Applied Materials Inc (AMAT)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,403,000 | 8,587,000 | 8,511,000 | 8,296,000 | 7,954,000 | 7,730,000 | 7,781,000 | 7,865,000 | 7,827,000 | 7,884,000 | 8,004,000 | 7,688,000 | 7,007,000 | 6,246,000 | 5,310,000 | 4,643,000 | 4,406,000 | 4,003,000 | 3,742,000 | 3,622,000 |
| Long-term debt | US$ in thousands | 5,460,000 | 6,158,000 | 5,463,000 | 5,462,000 | 5,461,000 | 5,460,000 | 5,459,000 | 5,458,000 | 5,457,000 | 5,456,000 | 5,455,000 | 5,454,000 | 5,452,000 | 5,451,000 | 5,450,000 | 5,449,000 | 5,448,000 | 5,447,000 | 6,215,000 | 4,714,000 |
| 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 |
| Return on total capital | 34.35% | 34.35% | 35.97% | 36.24% | 36.47% | 37.61% | 39.72% | 41.66% | 44.34% | 44.98% | 46.99% | 44.33% | 39.59% | 35.67% | 30.44% | 27.44% | 27.49% | 26.66% | 24.56% | 27.08% |
October 27, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $8,403,000K ÷ ($5,460,000K + $19,001,000K)
= 34.35%
Applied Materials Inc has shown a generally positive trend in its return on total capital over the past few years, with the ratio fluctuating between 24.56% and 46.99%. The company's return on total capital peaked at 46.99% in May 2022 before experiencing a slight decrease in the following quarters. However, the ratio remains above 30% in most periods, indicating the company's ability to generate a solid return on the total capital employed in its operations. This suggests that Applied Materials Inc is effectively utilizing its capital to generate profits for its stakeholders.
Peer comparison
Oct 27, 2024