Applied Materials Inc (AMAT)

Debt-to-equity 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-equity ratio		0.29	0.33	0.30	0.31	0.33	0.36	0.39	0.41	0.45	0.45	0.47	0.46	0.45	0.45	0.45	0.47	0.52	0.57	0.69	0.54

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 generally increasing trend over the period examined, reflecting an increasing reliance on debt financing relative to equity. The ratio stood at 0.29 as of October 27, 2024, and has gradually risen to 0.54 as of January 26, 2020.

This indicates that the company's level of debt in relation to equity has been growing over time. While a higher debt-to-equity ratio can amplify returns on equity, it also increases financial risk as higher debt levels may lead to increased interest expenses and potential financial instability.

It is important for stakeholders to monitor this ratio closely, as a continuously rising trend may signal potential challenges in debt management and liquidity. A balanced approach to capital structure is crucial for maintaining financial stability and sustainable growth in the long term.