Applied Materials Inc (AMAT)
Return on total capital
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 7,867,000 | 7,954,000 | 7,827,000 | 7,007,000 | 4,406,000 |
| Long-term debt | US$ in thousands | 5,460,000 | 5,461,000 | 5,457,000 | 5,452,000 | 5,448,000 |
| Total stockholders’ equity | US$ in thousands | 19,001,000 | 16,349,000 | 12,194,000 | 12,247,000 | 10,578,000 |
| Return on total capital | 32.16% | 36.47% | 44.34% | 39.59% | 27.49% |
October 27, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $7,867,000K ÷ ($5,460,000K + $19,001,000K)
= 32.16%
The return on total capital for Applied Materials Inc has exhibited a fluctuating trend over the past five years, ranging from a low of 27.49% in October 2020 to a high of 44.34% in October 2022. The return on total capital decreased from 39.59% in October 2021 to 36.47% in October 2023 before further declining to 32.16% in October 2024. These fluctuations indicate varying levels of efficiency in generating returns from the total capital employed by the company. Further analysis of the underlying factors driving these changes in return on total capital would be necessary to fully understand the performance of Applied Materials Inc in utilizing its capital resources effectively.
Peer comparison
Oct 27, 2024