Applied Materials Inc (AMAT)
Operating return on assets (Operating ROA)
| Jan 28, 2024 | Oct 29, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 29, 2023 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | Jan 30, 2022 | Oct 31, 2021 | Aug 1, 2021 | May 2, 2021 | Jan 31, 2021 | Oct 25, 2020 | Jul 26, 2020 | Apr 26, 2020 | Jan 26, 2020 | Oct 27, 2019 | Jul 28, 2019 | Apr 28, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 7,651,000 | 7,654,000 | 7,677,000 | 7,799,000 | 7,782,000 | 7,788,000 | 7,808,000 | 7,897,000 | 7,582,000 | 6,889,000 | 6,158,000 | 5,253,000 | 4,606,000 | 4,365,000 | 3,946,000 | 3,640,000 | 3,484,000 | 3,350,000 | 3,377,000 | 3,668,000 |
| Total assets | US$ in thousands | 31,540,000 | 30,729,000 | 30,410,000 | 29,092,000 | 27,959,000 | 26,726,000 | 26,161,000 | 25,459,000 | 25,428,000 | 25,825,000 | 24,479,000 | 24,085,000 | 23,305,000 | 22,353,000 | 21,171,000 | 21,815,000 | 19,767,000 | 19,024,000 | 18,805,000 | 18,775,000 |
| Operating ROA | 24.26% | 24.91% | 25.24% | 26.81% | 27.83% | 29.14% | 29.85% | 31.02% | 29.82% | 26.68% | 25.16% | 21.81% | 19.76% | 19.53% | 18.64% | 16.69% | 17.63% | 17.61% | 17.96% | 19.54% |
January 28, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $7,651,000K ÷ $31,540,000K
= 24.26%
Operating return on assets (operating ROA) is a key financial ratio that indicates the efficiency of a company in generating profits from its assets used in operations. Looking at the data provided for Applied Materials Inc. over the past eight quarters, a trend analysis reveals a slight decline in the operating ROA.
In Q2 2022, the operating ROA stood at 31.00%, indicating that the company generated $0.31 in operating income for every dollar of assets employed. Subsequently, the ratio declined to 29.83% in Q3 2022 and further decreased to 29.13% in Q4 2022.
Throughout 2023, there was a continuous downward trend in operating ROA, with the ratio falling to 27.83% in Q1, 26.81% in Q2, 25.24% in Q3, and eventually reaching 24.91% in Q4.
However, in Q1 2024, there was a slight improvement in the operating ROA to 24.26%. Despite this increase, the overall trend indicates a decline in the company's ability to generate profits from its assets over the period under review.
Further analysis and comparison with industry peers may be necessary to understand the factors contributing to Applied Materials Inc.'s decreasing operating ROA and to evaluate its overall financial performance.
Peer comparison
Jan 28, 2024