Applied Materials Inc (AMAT)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	6,352,000	6,872,000	6,863,000	6,854,000	7,168,000	7,482,000	7,764,000	8,046,000	7,587,000	7,128,000	6,699,000	6,412,000	6,569,000	6,600,000	6,616,000	6,505,000	6,324,000	6,269,000	6,470,000	6,656,000
Total assets	US$ in thousands	33,338,000	34,409,000	34,409,000	33,647,000	33,647,000	31,949,000	31,949,000	31,540,000	31,540,000	30,729,000	30,729,000	30,410,000	30,410,000	29,092,000	27,959,000	27,959,000	26,726,000	26,726,000	26,161,000	25,459,000
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%

January 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $6,352,000K ÷ $33,338,000K
= 19.05%

The return on assets (ROA) of Applied Materials Inc has shown a gradual decline over the past few years based on the provided data. Starting at a high of 26.14% on May 1, 2022, the ROA decreased to 19.05% on January 31, 2025. This indicates that the company's ability to generate profits from its assets has weakened over time.

Despite fluctuations in the ROA, it is important to note that Applied Materials Inc still maintains relatively strong performance in terms of asset utilization and profitability. However, the downward trend in ROA suggests potential challenges in effectively utilizing the company's assets to generate returns for its shareholders.

Overall, further analysis of the company's financial performance and operational efficiency may be necessary to understand the factors contributing to the declining ROA and to make informed decisions about the company's future prospects.