Applied Materials Inc (AMAT)
Return on assets (ROA)
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 7,177,000 | 7,177,000 | 6,856,000 | 6,856,000 | 6,525,000 |
| Total assets | US$ in thousands | 34,409,000 | 34,409,000 | 30,729,000 | 30,729,000 | 26,726,000 |
| ROA | 20.86% | 20.86% | 22.31% | 22.31% | 24.41% |
October 31, 2024 calculation
ROA = Net income ÷ Total assets
= $7,177,000K ÷ $34,409,000K
= 20.86%
Based on the data provided, Applied Materials Inc's return on assets (ROA) has been relatively stable over the past few years. The ROA was 24.41% as of October 31, 2022, declining slightly to 22.31% by October 29, 2023, and maintaining this level through October 31, 2023. Subsequently, there was a further decrease to 20.86% as of both October 27, 2024, and October 31, 2024.
Overall, the company has demonstrated a strong ability to generate profit relative to its total assets, with ROA figures consistently above 20% during the period analyzed. This indicates efficient asset utilization and effective management of resources to generate income. However, the slight decline in ROA from 2022 to 2024 may suggest potential challenges in maintaining profitability levels or optimizing asset performance in the future.
Peer comparison
Oct 31, 2024