Applied Materials Inc (AMAT)
Debt-to-equity ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,461,000 | 5,457,000 | 5,452,000 | 5,448,000 | 4,713,000 |
| Total stockholders’ equity | US$ in thousands | 16,349,000 | 12,194,000 | 12,247,000 | 10,578,000 | 8,214,000 |
| Debt-to-equity ratio | 0.33 | 0.45 | 0.45 | 0.52 | 0.57 |
October 29, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,461,000K ÷ $16,349,000K
= 0.33
The debt-to-equity ratio of Applied Materials Inc. has exhibited a decreasing trend over the past five years, indicating a favorable shift in the company's capital structure. As of October 29, 2023, the ratio stands at 0.35, suggesting that the company's level of debt in relation to its equity has diminished. This improvement indicates a reduced reliance on debt financing and a strengthened financial position. The declining trend is a positive indicator of the company's ability to manage its financial leverage and effectively fund its operations through equity and retained earnings. It is essential to continue monitoring this ratio to ensure that the company maintains a sustainable capital structure in the future.
Peer comparison
Oct 29, 2023