Applied Materials Inc (AMAT)
Financial leverage ratio
| Oct 31, 2024 | Oct 27, 2024 | Oct 31, 2023 | Oct 29, 2023 | Oct 31, 2022 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 34,409,000 | 34,409,000 | 30,729,000 | 30,729,000 | 26,726,000 |
| Total stockholders’ equity | US$ in thousands | 19,001,000 | 19,001,000 | 16,349,000 | 16,349,000 | 12,194,000 |
| Financial leverage ratio | 1.81 | 1.81 | 1.88 | 1.88 | 2.19 |
October 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $34,409,000K ÷ $19,001,000K
= 1.81
The financial leverage ratio of Applied Materials Inc has shown a gradual decrease from 2.19 in October 31, 2022, to 1.81 as of October 31, 2024. This indicates that the company has been able to reduce its reliance on debt financing over this period, which may suggest a stronger financial position and lower financial risk. A lower financial leverage ratio typically signifies that the company has a greater proportion of equity in its capital structure compared to debt, which can enhance its financial stability and potentially lower its cost of capital. Applied Materials Inc's decreasing trend in financial leverage ratio reflects a positive development in its capital structure management.
Peer comparison
Oct 31, 2024