Applied Materials Inc (AMAT)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	19,001,000	18,840,000	18,199,000	17,429,000	16,349,000	15,093,000	14,129,000	13,420,000	12,194,000	12,070,000	11,579,000	11,890,000	12,247,000	12,060,000	11,993,000	11,473,000	10,578,000	9,569,000	9,024,000	8,660,000
ROE		37.77%	39.54%	40.14%	41.07%	41.94%	42.69%	45.93%	48.06%	53.51%	55.06%	58.35%	55.09%	48.08%	44.00%	36.95%	33.62%	34.21%	33.30%	32.31%	32.64%

October 27, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $7,177,000K ÷ $19,001,000K
= 37.77%

The return on equity (ROE) of Applied Materials Inc has shown a generally increasing trend over the past few quarters, indicating improved profitability in relation to shareholders' equity. The ROE has consistently been above 30%, reflecting the company's ability to generate earnings from its shareholders' investments.

In the most recent quarter, the ROE stood at 37.77%, which is slightly lower compared to the previous quarter at 39.54%. Despite this slight decrease, the ROE remains robust and well above the industry average, indicating strong performance in utilizing shareholders' funds to generate profits.

Overall, Applied Materials Inc's ROE trend demonstrates effective management of assets and liabilities to create value for shareholders, showcasing the company's ability to generate attractive returns on the equity invested in the business.