Applied Materials Inc (AMAT)
Return on assets (ROA)
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,177,000 | 6,856,000 | 6,525,000 | 5,888,000 | 3,619,000 |
| Total assets | US$ in thousands | 34,409,000 | 30,729,000 | 26,726,000 | 25,825,000 | 22,353,000 |
| ROA | 20.86% | 22.31% | 24.41% | 22.80% | 16.19% |
October 27, 2024 calculation
ROA = Net income ÷ Total assets
= $7,177,000K ÷ $34,409,000K
= 20.86%
The return on assets (ROA) of Applied Materials Inc has been fluctuating over the past five years. The ROA was at its lowest point in October 2020 at 16.19% and steadily increased in the subsequent years, reaching a peak of 24.41% in October 2022. However, in the latest period of October 2024, the ROA decreased to 20.86%.
Overall, Applied Materials Inc has been effectively utilizing its assets to generate profits, as indicated by the ROA figures above industry averages. The slight decline in the latest ROA may warrant further investigation into the company's asset management efficiency to maintain sustainable profitability in the future.
Peer comparison
Oct 27, 2024