Applied Materials Inc (AMAT)
Debt-to-assets ratio
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,460,000 | 5,461,000 | 5,457,000 | 5,452,000 | 5,448,000 |
| Total assets | US$ in thousands | 34,409,000 | 30,729,000 | 26,726,000 | 25,825,000 | 22,353,000 |
| Debt-to-assets ratio | 0.16 | 0.18 | 0.20 | 0.21 | 0.24 |
October 27, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,460,000K ÷ $34,409,000K
= 0.16
The trend in Applied Materials Inc's debt-to-assets ratio over the past five years indicates a decreasing level of reliance on debt to finance the company's assets. The ratio has declined from 0.24 in October 2020 to 0.16 in October 2024. This suggests that the company has been gradually reducing its debt relative to its total assets. A lower debt-to-assets ratio signifies a healthier financial position and lower financial risk as the company is using a smaller proportion of debt financing compared to its total assets. This trend may reflect improved financial management and an increase in the company's ability to generate internal funds for investments and operations. Overall, the decreasing debt-to-assets ratio for Applied Materials Inc is a positive indicator of its financial stability and prudent capital structure management.
Peer comparison
Oct 27, 2024