Applied Materials Inc (AMAT)
Financial leverage ratio
| Oct 27, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Oct 25, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 34,409,000 | 30,729,000 | 26,726,000 | 25,825,000 | 22,353,000 |
| Total stockholders’ equity | US$ in thousands | 19,001,000 | 16,349,000 | 12,194,000 | 12,247,000 | 10,578,000 |
| Financial leverage ratio | 1.81 | 1.88 | 2.19 | 2.11 | 2.11 |
October 27, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $34,409,000K ÷ $19,001,000K
= 1.81
The financial leverage ratio for Applied Materials Inc has shown some fluctuations over the past five years. The ratio was 2.11 in both October 2021 and October 2020, indicating a consistent level of financial leverage during those years. However, there was a slight decrease to 2.19 in October 2022, followed by a further decline to 1.88 in October 2023. The most recent data point, as of October 27, 2024, shows a lower financial leverage ratio of 1.81.
A financial leverage ratio above 1 typically indicates that a company relies on debt to finance its operations, with higher ratios suggesting a higher level of debt relative to equity. The decreasing trend in Applied Materials Inc's financial leverage ratio from 2.11 in 2021 to 1.81 in 2024 may suggest a shift towards a lower reliance on debt financing and a stronger equity position. However, it is essential to consider other factors and ratios in conjunction with the financial leverage ratio to get a comprehensive understanding of the company's overall financial health and risk profile.
Peer comparison
Oct 27, 2024