Applied Materials Inc (AMAT)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	7,177,000	7,450,000	7,305,000	7,158,000	6,856,000	6,443,000	6,489,000	6,450,000	6,525,000	6,646,000	6,756,000	6,550,000	5,888,000	5,307,000	4,432,000	3,857,000	3,619,000	3,186,000	2,916,000	2,827,000
Total assets	US$ in thousands	34,409,000	33,647,000	31,949,000	31,540,000	30,729,000	30,410,000	29,092,000	27,959,000	26,726,000	26,161,000	25,459,000	25,428,000	25,825,000	24,479,000	24,085,000	23,305,000	22,353,000	21,171,000	21,815,000	19,767,000
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%

October 27, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $7,177,000K ÷ $34,409,000K
= 20.86%

Applied Materials Inc's return on assets (ROA) has shown a generally positive trend over the periods indicated in the provided data. The ROA increased from 14.30% in January 2020 to a peak of 26.54% in May 2022, indicating an improvement in the company's ability to generate profits from its assets during this period.

However, following the peak in May 2022, the ROA has shown a slight decline to 20.86% in October 2024. Despite this decrease, the ROA remains at a relatively high level compared to the earlier periods, suggesting that Applied Materials Inc continues to effectively utilize its assets to generate profits.

Overall, the analysis of the ROA indicates that Applied Materials Inc has been successful in managing its assets efficiently to generate profits for its shareholders, although there has been a slight downward trend in recent periods.