Applied Materials Inc (AMAT)

Return on total capital

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 8,220,000 7,979,000 7,842,000 7,849,000 7,874,000 8,294,000 8,353,000 8,530,000 8,429,000 7,933,000 7,873,000 7,613,000 7,767,000 7,895,000 7,990,000 7,944,000 7,846,000 7,746,000 7,718,000 7,776,000
Long-term debt US$ in thousands 5,460,000 6,158,000 5,463,000 5,462,000 5,461,000 5,460,000 5,458,000 5,457,000 5,455,000
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
Return on total capital 44.13% 41.99% 32.06% 41.66% 31.50% 45.57% 35.30% 48.94% 36.82% 48.52% 36.10% 50.44% 37.79% 55.88% 59.54% 42.08% 64.34% 43.88% 63.94% 45.65%

January 31, 2025 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $8,220,000K ÷ ($—K + $18,625,000K)
= 44.13%

Based on the provided data for Applied Materials Inc, the return on total capital has shown fluctuations over the analyzed period. The return on total capital ranged from a high of 64.34% on October 31, 2022, to a low of 31.50% on July 28, 2024.

The return on total capital for the most recent date, January 31, 2025, stands at 44.13%. This indicates that for every dollar of total capital employed in the company, Applied Materials Inc generated a return of 44.13 cents.

Overall, the return on total capital for Applied Materials Inc demonstrates variability but generally reflects a profitable utilization of capital over the analyzed period. Investors and stakeholders may consider analyzing the trend of this financial metric alongside other performance indicators to assess the company's financial health and efficiency in generating returns on its capital investments.