Applied Materials Inc (AMAT)
Debt-to-equity 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-equity ratio | 0.29 | 0.33 | 0.45 | 0.45 | 0.52 |
October 27, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,460,000K ÷ $19,001,000K
= 0.29
The debt-to-equity ratio of Applied Materials Inc has shown a declining trend over the past five years, indicating a decreasing reliance on debt financing relative to shareholder equity. In the most recent fiscal year ending on October 27, 2024, the ratio stood at 0.29, suggesting that the company's debt levels were relatively low compared to its equity. This could signal a strong financial position, as lower debt levels typically imply lower financial risk and greater financial stability. Over the previous four years, the ratio fluctuated between 0.33 and 0.52, with the highest ratio recorded on October 25, 2020. This variability could reflect changing capital structures and financing strategies employed by the company during this period. Overall, the declining trend in the debt-to-equity ratio for Applied Materials Inc indicates a positive shift towards a more equity-funded capital structure, which may be viewed favorably by investors and creditors.
Peer comparison
Oct 27, 2024