Applied Materials Inc (AMAT)
Operating return on assets (Operating ROA)
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 7,867,000 | 7,654,000 | 7,788,000 | 6,889,000 | 4,365,000 |
| Total assets | US$ in thousands | 34,409,000 | 30,729,000 | 26,726,000 | 25,825,000 | 22,353,000 |
| Operating ROA | 22.86% | 24.91% | 29.14% | 26.68% | 19.53% |
October 27, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $7,867,000K ÷ $34,409,000K
= 22.86%
Applied Materials Inc's operating return on assets (ROA) has shown a decreasing trend over the past five years. In the most recent fiscal year ending on October 27, 2024, the operating ROA was 22.86%, which is lower compared to the previous year's 24.91% on October 29, 2023. This indicates that the company may have experienced challenges in generating operating income relative to its assets in the latest period.
However, it is noteworthy that Applied Materials Inc's operating ROA was relatively higher in the previous fiscal years, with figures of 29.14% on October 30, 2022, and 26.68% on October 31, 2021. The highest operating ROA was recorded on October 30, 2022, suggesting strong operational efficiency in utilizing its assets to generate income during that period.
On the other hand, the operating ROA was lower at 19.53% on October 25, 2020, indicating a decline in asset efficiency compared to the more recent years. Overall, the fluctuation in Applied Materials Inc's operating ROA over the past five years implies varying levels of operational performance and asset utilization by the company.
Peer comparison
Oct 27, 2024