Applied Materials Inc (AMAT)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 47.82% | 47.42% | 47.43% | 47.40% | 47.52% | 47.72% | 47.64% | 47.61% | 47.26% | 46.91% | 46.79% | 46.56% | 46.82% | 46.65% | 46.55% | 46.41% | 46.37% | 46.60% | 46.85% | 47.25% |
| Operating profit margin | 29.35% | 28.91% | 28.84% | 28.73% | 28.90% | 29.12% | 29.26% | 29.42% | 29.11% | 28.80% | 28.68% | 28.59% | 28.99% | 29.32% | 29.54% | 29.61% | 29.83% | 30.03% | 30.47% | 31.06% |
| Pretax margin | 28.14% | 27.94% | 28.72% | 29.48% | 30.84% | 32.26% | 32.83% | 33.43% | 31.91% | 30.37% | 28.96% | 28.07% | 28.43% | 28.58% | 29.14% | 29.00% | 29.13% | 29.37% | 29.78% | 30.41% |
| Net profit margin | 22.71% | 24.91% | 25.24% | 25.55% | 26.79% | 28.08% | 29.06% | 30.05% | 28.64% | 27.21% | 25.66% | 24.49% | 24.88% | 24.66% | 24.65% | 24.44% | 24.17% | 24.43% | 25.64% | 26.71% |
Applied Materials Inc has shown consistent improvement in its profitability ratios over the past few years. The gross profit margin has been gradually increasing from 46.85% in July 31, 2022, to 47.82% in January 31, 2025. This upward trend indicates the company's ability to efficiently control its production costs and generate a higher percentage of revenue as gross profit.
Similarly, the operating profit margin has also shown a positive trajectory, improving from 28.59% in July 31, 2023, to 29.35% in January 31, 2025. This indicates that the company has been effective in managing its operating expenses and optimizing its operational efficiency to enhance profitability.
The pretax margin, although volatile, has generally trended upwards, with a significant increase from 27.94% in October 31, 2024, to 28.14% in January 31, 2025. This suggests that Applied Materials Inc has been successful in controlling its pre-tax expenses and increasing its pre-tax profitability over time.
However, the net profit margin has shown some fluctuations but has overall been positive, with a slight decrease towards the end of the period, from 28.08% in April 30, 2024, to 22.71% in January 31, 2025. This decline could be attributed to various factors such as changes in tax regulations or other one-time expenses that affected the bottom line.
In conclusion, Applied Materials Inc's profitability ratios demonstrate a positive trend overall, with improvements in gross profit margin, operating profit margin, and pre-tax margin over the period analyzed. The company has maintained solid profitability levels despite some fluctuations in the net profit margin, indicating effective cost management and operational efficiencies.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 19.05% | 19.97% | 19.95% | 20.37% | 21.30% | 23.42% | 24.30% | 25.51% | 24.06% | 23.20% | 21.80% | 21.09% | 21.60% | 22.69% | 23.66% | 23.27% | 23.66% | 23.46% | 24.73% | 26.14% |
| Return on total capital | 44.13% | 41.99% | 32.06% | 41.66% | 31.50% | 45.57% | 35.30% | 48.94% | 36.82% | 48.52% | 36.10% | 50.44% | 37.79% | 55.88% | 59.54% | 42.08% | 64.34% | 43.88% | 63.94% | 45.65% |
| Return on equity (ROE) | 34.10% | 36.17% | 36.12% | 36.38% | 38.05% | 41.11% | 42.66% | 46.16% | 43.53% | 43.60% | 40.97% | 42.48% | 43.52% | 46.71% | 49.30% | 48.47% | 51.86% | 51.41% | 53.60% | 57.48% |
Applied Materials Inc's profitability ratios reflect a generally stable performance over the reported periods. The Operating return on assets (Operating ROA) has shown a slight decline from 30.40% on May 1, 2022, to 24.62% on January 31, 2025, indicating a decrease in the company's ability to generate profits from its assets through core operations.
Similarly, the Return on assets (ROA) has also experienced a downward trend from 26.14% in May 1, 2022, to 19.05% in January 31, 2025, suggesting a decrease in overall profitability relative to the size of its assets.
The Return on total capital ratio has fluctuated throughout the periods, with a peak of 64.34% on October 31, 2022, and a low of 31.50% on July 28, 2024. This indicates variability in the company's ability to generate returns for both debt and equity holders.
Lastly, the Return on equity (ROE) has shown a declining trajectory from 57.48% on May 1, 2022, to 34.10% on January 31, 2025, suggesting a decrease in the return generated for the company's shareholders over time.
Overall, the profitability ratios of Applied Materials Inc demonstrate fluctuations and a decreasing trend over the reported periods, which may require further analysis to identify the factors influencing these changes and their impact on the company's financial performance.