Applied Materials Inc (AMAT)
Operating return on assets (Operating ROA)
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 8,209,000 | 7,976,000 | 7,842,000 | 7,708,000 | 7,733,000 | 7,758,000 | 7,817,000 | 7,876,000 | 7,711,000 | 7,546,000 | 7,486,000 | 7,485,000 | 7,653,000 | 7,845,000 | 7,928,000 | 7,882,000 | 7,806,000 | 7,706,000 | 7,688,000 | 7,740,000 |
| Total assets | US$ in thousands | 33,338,000 | 34,409,000 | 34,409,000 | 33,647,000 | 33,647,000 | 31,949,000 | 31,949,000 | 31,540,000 | 31,540,000 | 30,729,000 | 30,729,000 | 30,410,000 | 30,410,000 | 29,092,000 | 27,959,000 | 27,959,000 | 26,726,000 | 26,726,000 | 26,161,000 | 25,459,000 |
| Operating ROA | 24.62% | 23.18% | 22.79% | 22.91% | 22.98% | 24.28% | 24.47% | 24.97% | 24.45% | 24.56% | 24.36% | 24.61% | 25.17% | 26.97% | 28.36% | 28.19% | 29.21% | 28.83% | 29.39% | 30.40% |
January 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $8,209,000K ÷ $33,338,000K
= 24.62%
Applied Materials Inc has shown a fluctuating trend in its operating return on assets (operating ROA) over the past few years. The operating ROA ranged from 30.40% on May 1, 2022, to 22.91% on July 31, 2024. During this period, the operating ROA experienced a gradual decline, indicating a decrease in the company's ability to generate operating profits relative to its total assets.
The average operating ROA over this period was approximately 26.39%, suggesting that Applied Materials Inc was able to generate around 26.39 cents of operating profit for every dollar of assets employed during this timeframe. It is important for investors and analysts to monitor this ratio as a lower operating ROA may indicate inefficiencies in asset utilization and may impact the company's overall profitability.
Furthermore, the downward trend in operating ROA could be attributed to various factors such as increased operating expenses, lower revenues, or changes in the asset base. Analysts should delve deeper into the company's financial statements and operational performance to understand the underlying reasons behind the fluctuations in operating ROA and assess the company's financial health and performance accurately.
Peer comparison
Jan 31, 2025