Applied Materials Inc (AMAT)
Operating return on assets (Operating ROA)
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 7,654,000 | 7,788,000 | 6,889,000 | 4,365,000 | 3,350,000 |
| Total assets | US$ in thousands | 30,729,000 | 26,726,000 | 25,825,000 | 22,353,000 | 19,024,000 |
| Operating ROA | 24.91% | 29.14% | 26.68% | 19.53% | 17.61% |
October 29, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $7,654,000K ÷ $30,729,000K
= 24.91%
To analyze Applied Materials Inc.'s operating return on assets (operating ROA) over the past five years, we can observe a fluctuating trend. The operating ROA decreased from 29.13% in 2022 to 24.91% in 2023, after showing an increasing trend from 2019 to 2022. This decline may indicate a decrease in the company's operating income generated relative to its total assets. However, it is important to note that the 24.91% operating ROA in 2023 is still higher compared to the values of 2019 and 2020.
Overall, Applied Materials Inc. has demonstrated a relatively strong operating ROA over the past five years, with the metric consistently exceeding 17.61% since 2019. This suggests that the company has been effectively utilizing its assets to generate operating income, albeit with some fluctuations. Further analysis of the company's financial performance and industry trends would provide more context for these changes in operating ROA.
Peer comparison
Oct 29, 2023