Applied Materials Inc (AMAT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 19,001,000 | 16,349,000 | 12,194,000 | 12,247,000 | 10,578,000 |
| ROE | 37.77% | 41.94% | 53.51% | 48.08% | 34.21% |
October 27, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $7,177,000K ÷ $19,001,000K
= 37.77%
Applied Materials Inc's Return on Equity (ROE) has fluctuated over the past five years, ranging from 34.21% in October 2020 to 53.51% in October 2022. The ROE for the most recent fiscal year ending October 27, 2024, stands at 37.77%.
The downward trend in ROE since the peak in October 2022 may indicate a decrease in the company's ability to generate profits from shareholders' equity. However, it is important to note that the ROE levels of Applied Materials Inc have remained relatively high, indicating solid financial performance.
Further analysis, including an examination of the company's profitability, efficiency, and leverage ratios, would provide a deeper insight into the factors influencing the changes in ROE over the years. Overall, while the recent decrease in ROE may warrant attention, Applied Materials Inc's historical ROE levels suggest a strong performance in utilizing shareholders' equity to generate returns.
Peer comparison
Oct 27, 2024