Applied Materials Inc (AMAT)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 47.29% | 47.13% | 46.80% | 46.74% | 46.79% | 46.87% | 47.53% | 48.02% | 48.17% | 47.70% | 46.87% | 45.91% | 44.96% | 44.72% | 44.23% | 44.04% | 43.81% | 43.72% | 43.86% | 44.15% |
| Operating profit margin | 29.08% | 29.13% | 29.17% | 29.53% | 29.90% | 30.43% | 31.35% | 32.14% | 31.69% | 30.11% | 28.58% | 26.54% | 25.30% | 25.37% | 24.26% | 23.58% | 23.20% | 22.93% | 23.11% | 24.11% |
| Pretax margin | 30.63% | 29.37% | 28.47% | 28.58% | 29.33% | 29.70% | 30.74% | 31.65% | 31.17% | 29.59% | 27.88% | 25.60% | 24.18% | 24.22% | 23.13% | 22.71% | 22.55% | 22.38% | 22.61% | 23.66% |
| Net profit margin | 27.21% | 26.09% | 24.48% | 24.57% | 24.78% | 25.50% | 26.69% | 27.50% | 27.38% | 25.73% | 24.63% | 22.39% | 21.19% | 21.04% | 19.58% | 18.89% | 18.83% | 18.52% | 18.92% | 21.10% |
Applied Materials Inc.'s profitability ratios have shown some fluctuations over the past quarters. The gross profit margin has remained relatively stable around the mid-40% range, indicating the company is able to effectively control its core production costs.
The operating profit margin has exhibited a gradual decline from Q1 2023 to Q1 2024, suggesting potential challenges in managing operating expenses efficiently.
The pretax margin also shows a similar trend of decreasing profitability over the quarters, indicating that expenses or charges before taxes have been impacting the company's overall earnings.
Net profit margin, reflecting the company's bottom-line profitability, has shown a decreasing trend from Q1 2023 to Q1 2024. This indicates that after all expenses, including taxes, Applied Materials Inc.'s net income has been declining.
Overall, while Applied Materials Inc. has maintained a healthy gross profit margin, the declining trend in operating profit margin, pretax margin, and net profit margin suggests potential challenges that may require further analysis and strategic adjustments to improve overall profitability.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 22.69% | 22.31% | 21.19% | 22.31% | 23.07% | 24.41% | 25.40% | 26.54% | 25.76% | 22.80% | 21.68% | 18.40% | 16.55% | 16.19% | 15.05% | 13.37% | 14.30% | 14.22% | 14.70% | 17.10% |
| Return on total capital | 36.24% | 36.47% | 37.61% | 39.72% | 41.66% | 44.34% | 44.98% | 46.99% | 44.33% | 39.59% | 35.67% | 30.44% | 27.44% | 27.49% | 26.66% | 24.56% | 27.08% | 27.12% | 26.38% | 28.40% |
| Return on equity (ROE) | 41.07% | 41.94% | 42.69% | 45.93% | 48.06% | 53.51% | 55.06% | 58.35% | 55.09% | 48.08% | 44.00% | 36.95% | 33.62% | 34.21% | 33.30% | 32.31% | 32.64% | 32.94% | 34.07% | 39.14% |
Applied Materials Inc. has shown a consistent and strong performance in terms of profitability ratios over the past eight quarters.
The operating return on assets (Operating ROA) has ranged from 24.26% to 31.00%, indicating the company's ability to generate operating profit relative to its total assets. This ratio has generally shown a declining trend over the quarters, which could imply potential efficiency issues in asset utilization or increasing costs.
The overall return on assets (ROA) has also been robust, ranging from 21.19% to 26.54%. This metric reflects the company's ability to generate profit from its total assets, and the variation seen could be attributed to fluctuations in net income or changes in asset base.
The return on total capital has been consistently high, ranging from 33.13% to 46.33%. This ratio signifies the efficiency of the company in generating returns for both debt and equity providers. The increasing trend in this ratio indicates a positive impact on profitability from the use of both debt and equity capital.
Lastly, the return on equity (ROE) has been impressive, ranging from 41.07% to 58.35%. This ratio highlights the company's ability to generate profit for its shareholders from the equity invested in the company. The upward trend in ROE reflects a strong performance in utilizing shareholders' equity to generate profits.
Overall, Applied Materials Inc. has exhibited strong profitability ratios over the past quarters, suggesting efficient management of assets, capital, and equity to generate profits for the company and its stakeholders.