Applied Materials Inc (AMAT)

Debt-to-capital ratio

		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	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Long-term debt	US$ in thousands	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	4,713,000	5,312,000	5,311,000
Total stockholders’ equity	US$ in thousands	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	8,214,000	8,116,000	8,201,000
Debt-to-capital ratio		0.24	0.25	0.27	0.28	0.29	0.31	0.31	0.32	0.31	0.31	0.31	0.31	0.32	0.34	0.36	0.41	0.35	0.36	0.40	0.39

January 28, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,462,000K ÷ ($5,462,000K + $17,429,000K)
= 0.24

The debt-to-capital ratio of Applied Materials Inc. has exhibited a slight declining trend over the past eight quarters. Starting at 0.32 in Q2 2022, the ratio has consistently decreased to 0.25 in Q1 2024. This signifies that the company has been reducing its reliance on debt in relation to its total capital over this period.

A lower debt-to-capital ratio generally indicates a lower level of financial risk and a stronger ability to meet its financial obligations. Applied Materials Inc.'s decreasing trend in the ratio suggests a positive development in its financial structure, which may enhance its financial stability and resilience to economic downturns. Investors and creditors may view this trend favorably as it could indicate improved financial health and management efficiency.