Applied Materials Inc (AMAT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 19,001,000 | 19,001,000 | 16,349,000 | 16,349,000 | 12,194,000 |
| ROE | 37.77% | 37.77% | 41.94% | 41.94% | 53.51% |
October 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $7,177,000K ÷ $19,001,000K
= 37.77%
The Return on Equity (ROE) for Applied Materials Inc has shown a declining trend over the past years, decreasing from 53.51% as of October 31, 2022, to 37.77% as of October 31, 2024. This indicates a decrease in the company's ability to generate profits from shareholders' equity during this period. It is essential for the company to analyze the factors contributing to this decline and take necessary steps to improve its ROE in the future. Declining ROE may signal inefficiency in utilizing the shareholders' investment or decreasing profitability relative to the equity invested in the company.
Peer comparison
Oct 31, 2024