Applied Materials Inc (AMAT)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 18,625,000 | 19,001,000 | 19,001,000 | 18,840,000 | 18,840,000 | 18,199,000 | 18,199,000 | 17,429,000 | 17,429,000 | 16,349,000 | 16,349,000 | 15,093,000 | 15,093,000 | 14,129,000 | 13,420,000 | 13,420,000 | 12,194,000 | 12,194,000 | 12,070,000 | 11,579,000 |
| ROE | 34.10% | 36.17% | 36.12% | 36.38% | 38.05% | 41.11% | 42.66% | 46.16% | 43.53% | 43.60% | 40.97% | 42.48% | 43.52% | 46.71% | 49.30% | 48.47% | 51.86% | 51.41% | 53.60% | 57.48% |
January 31, 2025 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $6,352,000K ÷ $18,625,000K
= 34.10%
The Return on Equity (ROE) of Applied Materials Inc has shown a declining trend over the period from May 2022 to January 2025. The ROE started at a relatively high level of 57.48% in May 2022 and gradually decreased to 34.10% in January 2025. This indicates that the company's ability to generate profits from its shareholders' equity has decreased over time.
The decreasing trend in ROE could be attributed to various factors such as a decrease in net income, an increase in shareholders' equity, or a combination of both. A declining ROE may signal challenges in generating profits relative to the amount of equity invested in the company.
It is essential for stakeholders to closely monitor the ROE trend to assess Applied Materials Inc's financial performance and efficiency in utilizing shareholders' equity to generate returns. Further analysis of the company's financial statements and operational performance could provide insights into the factors influencing the ROE trend and help in making informed decisions regarding investment in the company.
Peer comparison
Jan 31, 2025
See also:
Applied Materials Inc Return on Equity (ROE) (Quarterly Data)