Applied Materials Inc (AMAT)
Debt-to-capital ratio
| Oct 27, 2024 | Jul 28, 2024 | Apr 28, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,460,000 | 6,158,000 | 5,463,000 | 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 |
| Total stockholders’ equity | US$ in thousands | 19,001,000 | 18,840,000 | 18,199,000 | 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 |
| Debt-to-capital ratio | 0.22 | 0.25 | 0.23 | 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 |
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 shown some fluctuations over the past several quarters, ranging from 0.22 to 0.41. Generally, the trend indicates that the company has been consistently utilizing a significant portion of debt in its capital structure, with the ratio hovering around the mid to high 20s and occasionally reaching into the 30s and 40s.
The lower ratios (0.22 to 0.25) suggest that the company has had relatively lower levels of debt compared to its total capital during those periods. This could indicate a more conservative approach to financing and lower financial risk. On the other hand, the higher ratios (0.31 to 0.41) reflect a higher proportion of debt in relation to the company's total capital, signaling potentially higher financial leverage and risk.
It's essential to note that the optimal level of debt-to-capital ratio can vary across industries and companies, depending on their business models, growth strategies, and risk tolerance. A high debt-to-capital ratio may not necessarily be negative if the company can effectively manage its debt obligations and generate sufficient cash flows to support its operations and growth.
Further analysis of Applied Materials Inc's financial position, cash flow generation, profitability, and overall debt management strategies would provide a more comprehensive understanding of the implications of these debt-to-capital ratio fluctuations.
Peer comparison
Oct 27, 2024