Applied Materials Inc (AMAT)

Debt-to-capital ratio

		Oct 31, 2024	Oct 27, 2024	Oct 31, 2023	Oct 29, 2023	Oct 31, 2022
Long-term debt	US$ in thousands	—	5,460,000	—	5,461,000	—
Total stockholders’ equity	US$ in thousands	19,001,000	19,001,000	16,349,000	16,349,000	12,194,000
Debt-to-capital ratio		0.00	0.22	0.00	0.25	0.00

October 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $19,001,000K)
= 0.00

The debt-to-capital ratio for Applied Materials Inc has shown fluctuations over the years based on the provided data. As of October 31, 2022, the ratio stood at 0.00, indicating that there was no debt relative to the company's capital at that time. This suggests a strong capital structure with little reliance on debt financing.

Subsequently, the ratio increased to 0.25 by October 29, 2023, indicating that 25% of the company's capital was funded by debt. This rise may suggest that the company took on more debt during this period, potentially to fund expansion or other strategic initiatives.

However, by October 31, 2023, the ratio dropped back to 0.00, signaling a return to a debt-free capital structure. This could indicate that the company paid off its debt or significantly reduced its borrowing.

The trend continued as of October 27, 2024, with the ratio at 0.22, showing a moderate level of debt compared to the company's capital. This suggests a balanced approach to capital structure, utilizing both debt and equity financing.

Overall, the fluctuation in Applied Materials Inc's debt-to-capital ratio indicates strategic decision-making regarding the company's financing mix, reflecting varying levels of debt utilization in different periods.