Applied Materials Inc (AMAT)
Financial leverage ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | Oct 27, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 30,729,000 | 26,726,000 | 25,825,000 | 22,353,000 | 19,024,000 |
| Total stockholders’ equity | US$ in thousands | 16,349,000 | 12,194,000 | 12,247,000 | 10,578,000 | 8,214,000 |
| Financial leverage ratio | 1.88 | 2.19 | 2.11 | 2.11 | 2.32 |
October 29, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $30,729,000K ÷ $16,349,000K
= 1.88
The financial leverage ratio for Applied Materials Inc. has shown fluctuations over the past five years. The ratio decreased from 2.32 in 2019 to 2.11 in 2021, indicating a decrease in the company's reliance on debt financing to fund its assets. However, this trend reversed in 2022 with the ratio increasing to 2.19, and further increased to 1.88 in 2023. This suggests that the company's financial leverage has decreased significantly in the most recent year, possibly indicating a shift towards a less leveraged capital structure. It is important to assess the reasons behind these fluctuations to understand the impact on the company's financial risk and capital management.
Peer comparison
Oct 29, 2023