Applied Materials Inc (AMAT)
Debt-to-assets ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,461,000 | 5,457,000 | 5,452,000 | 5,448,000 | 4,713,000 |
| Total assets | US$ in thousands | 30,729,000 | 26,726,000 | 25,825,000 | 22,353,000 | 19,024,000 |
| Debt-to-assets ratio | 0.18 | 0.20 | 0.21 | 0.24 | 0.25 |
October 29, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,461,000K ÷ $30,729,000K
= 0.18
The debt-to-assets ratio of Applied Materials Inc. has demonstrated a declining trend over the past five years, indicating an improving financial position in terms of debt management and asset utilization. As of October 29, 2023, the company's debt-to-assets ratio stands at 0.18, reflecting a decrease from 0.20 in the previous year and a notable decline from 0.28 in October 2019.
A lower debt-to-assets ratio implies a lower financial risk and a greater proportion of assets financed by equity rather than debt. This suggests that the company has been effectively managing its debt levels in relation to its asset base, potentially reducing the risk of financial distress and enhancing its capacity to invest in growth opportunities.
The downward trend in the debt-to-assets ratio aligns with a positive trajectory in the company's financial health and capital structure, indicating a prudent approach to leveraging its assets and maintaining a sustainable balance between debt and equity financing.
Peer comparison
Oct 29, 2023