Applied Materials Inc (AMAT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 34,409,000 | 33,647,000 | 31,949,000 | 31,540,000 | 30,729,000 | 30,410,000 | 29,092,000 | 27,959,000 | 26,726,000 | 26,161,000 | 25,459,000 | 25,428,000 | 25,825,000 | 24,479,000 | 24,085,000 | 23,305,000 | 22,353,000 | 21,171,000 | 21,815,000 | 19,767,000 |
| 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 |
| Financial leverage ratio | 1.81 | 1.79 | 1.76 | 1.81 | 1.88 | 2.01 | 2.06 | 2.08 | 2.19 | 2.17 | 2.20 | 2.14 | 2.11 | 2.03 | 2.01 | 2.03 | 2.11 | 2.21 | 2.42 | 2.28 |
October 27, 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 fluctuated over the past few quarters, indicating changes in the company's capital structure and debt levels. The ratio has been relatively high, ranging from 1.76 to 2.42, suggesting that the company relies significantly on debt to finance its operations and investments.
The ratio peaked at 2.42 in the first quarter of 2020, and since then, it has gradually decreased to 1.81 in the most recent quarter. This decline may indicate that Applied Materials Inc has been managing its debt levels more efficiently or has been paying down debt.
Overall, a higher financial leverage ratio implies higher financial risk and potential volatility in earnings due to interest expenses. Investors and stakeholders should monitor the trend of this ratio to assess the company's ability to meet its debt obligations and its overall financial health.
Peer comparison
Oct 27, 2024