Applied Materials Inc (AMAT)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 19,001,000 | 16,349,000 | 12,194,000 | 12,247,000 | 10,578,000 |
| Debt-to-capital ratio | 0.22 | 0.25 | 0.31 | 0.31 | 0.34 |
October 27, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,460,000K ÷ ($5,460,000K + $19,001,000K)
= 0.22
The debt-to-capital ratio of Applied Materials Inc has been on a declining trend over the past five years. As of October 27, 2024, the ratio stands at 0.22, indicating that the company relies less on debt financing relative to its total capital structure. This downward trend suggests that Applied Materials Inc has been effectively managing its debt levels and increasing its equity stake in the company.
The decreasing debt-to-capital ratio is a positive indicator of financial health as it signifies a lower reliance on debt to fund operations and growth. A declining ratio can also indicate improved creditworthiness and lower financial risk for the company. Overall, the decreasing trend in the debt-to-capital ratio for Applied Materials Inc reflects a prudent approach to capital structure management and financial stability.
Peer comparison
Oct 27, 2024