Applied Materials Inc (AMAT)
Return on total capital
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,954,000 | 7,827,000 | 7,007,000 | 4,406,000 | 3,506,000 |
| Long-term debt | US$ in thousands | 5,461,000 | 5,457,000 | 5,452,000 | 5,448,000 | 4,713,000 |
| Total stockholders’ equity | US$ in thousands | 16,349,000 | 12,194,000 | 12,247,000 | 10,578,000 | 8,214,000 |
| Return on total capital | 36.47% | 44.34% | 39.59% | 27.49% | 27.12% |
October 29, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,954,000K ÷ ($5,461,000K + $16,349,000K)
= 36.47%
Applied Materials Inc.'s return on total capital has fluctuated over the past five years, ranging from 24.77% in 2019 to 44.10% in 2022. The return decreased to 27.24% in 2020 before increasing again to 40.68% in 2021. However, there was a noticeable decline to 34.77% in 2023. This indicates that the company's ability to generate profits from both equity and debt capital has varied significantly. Further analysis of the factors affecting the return on total capital, such as changes in profitability, asset efficiency, and capital structure, would be essential to gain a deeper understanding of the company's financial performance.
Peer comparison
Oct 29, 2023