Applied Materials Inc (AMAT)

Profitability ratios

Return on sales

Oct 27, 2024 Jul 28, 2024 Apr 28, 2024 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
Gross profit margin 47.66% 47.60% 47.47% 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%
Operating profit margin 29.07% 29.14% 29.05% 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%
Pretax margin 30.13% 31.52% 31.42% 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%
Net profit margin 26.52% 27.86% 27.73% 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%

Applied Materials Inc has maintained a relatively stable gross profit margin, averaging around 47% over the past few quarters. The operating profit margin has also been consistent, staying above 29% in most periods. However, there was a slight dip in the net profit margin in the most recent quarter, which was at 26.52%, down from the previous quarter at 27.86%.

Overall, the company has shown a strong ability to generate profits from its operations, with healthy margins across the board. The pretax margin has also shown stability, with an average of around 30% over the past few quarters. This indicates that Applied Materials Inc effectively manages its operating expenses relative to its revenues.

The downward trend in net profit margin in the most recent quarter may warrant further investigation to understand the factors contributing to this decline. However, the company's profitability ratios, including gross profit margin, operating profit margin, and pretax margin, remain at satisfactory levels, showcasing its ability to generate profits effectively.


Return on investment

Oct 27, 2024 Jul 28, 2024 Apr 28, 2024 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
Operating return on assets (Operating ROA) 22.86% 23.16% 23.95% 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%
Return on assets (ROA) 20.86% 22.14% 22.86% 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%
Return on total capital 34.35% 34.35% 35.97% 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%
Return on equity (ROE) 37.77% 39.54% 40.14% 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%

Applied Materials Inc has shown consistently strong profitability ratios over the past several quarters. The company's operating return on assets (Operating ROA) has ranged between 22.86% and 31.02%, indicating its ability to generate profits from its assets used in operations. Return on assets (ROA) has also been impressive, varying from 15.05% to 26.54%, demonstrating the company's efficiency in utilizing its total assets to generate earnings.

Moreover, the return on total capital has been consistently high, ranging from 24.56% to 46.99%, reflecting the company's effectiveness in generating returns on both equity and debt capital invested in the business. Return on equity (ROE) has been particularly noteworthy, ranging from 32.31% to 58.35%, showcasing the company's ability to generate profits for its shareholders from the equity investments made in the company.

Overall, Applied Materials Inc's profitability ratios indicate a strong and effective utilization of its assets and capital, leading to consistent and impressive returns for both the company and its shareholders.


See also:

Applied Materials Inc Profitability Ratios (Quarterly Data)