Applied Materials Inc (AMAT)
Financial leverage ratio
| Jan 31, 2025 | Oct 31, 2024 | Oct 27, 2024 | Jul 31, 2024 | Jul 28, 2024 | Apr 30, 2024 | Apr 28, 2024 | Jan 31, 2024 | Jan 28, 2024 | Oct 31, 2023 | Oct 29, 2023 | Jul 31, 2023 | Jul 30, 2023 | Apr 30, 2023 | Jan 31, 2023 | Jan 29, 2023 | Oct 31, 2022 | Oct 30, 2022 | Jul 31, 2022 | May 1, 2022 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 33,338,000 | 34,409,000 | 34,409,000 | 33,647,000 | 33,647,000 | 31,949,000 | 31,949,000 | 31,540,000 | 31,540,000 | 30,729,000 | 30,729,000 | 30,410,000 | 30,410,000 | 29,092,000 | 27,959,000 | 27,959,000 | 26,726,000 | 26,726,000 | 26,161,000 | 25,459,000 |
| Total stockholders’ equity | US$ in thousands | 18,625,000 | 19,001,000 | 19,001,000 | 18,840,000 | 18,840,000 | 18,199,000 | 18,199,000 | 17,429,000 | 17,429,000 | 16,349,000 | 16,349,000 | 15,093,000 | 15,093,000 | 14,129,000 | 13,420,000 | 13,420,000 | 12,194,000 | 12,194,000 | 12,070,000 | 11,579,000 |
| Financial leverage ratio | 1.79 | 1.81 | 1.81 | 1.79 | 1.79 | 1.76 | 1.76 | 1.81 | 1.81 | 1.88 | 1.88 | 2.01 | 2.01 | 2.06 | 2.08 | 2.08 | 2.19 | 2.19 | 2.17 | 2.20 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $33,338,000K ÷ $18,625,000K
= 1.79
The financial leverage ratio of Applied Materials Inc has exhibited some fluctuations over the specified time period, starting at 2.20 on May 1, 2022, and reaching a low of 1.76 on April 30, 2024, before slightly increasing to 1.79 by July 31, 2024. The ratio indicates the company's level of debt relative to its equity, demonstrating how much the company relies on debt to finance its operations.
The decreasing trend in the financial leverage ratio suggests that Applied Materials Inc has been reducing its reliance on debt financing and may be strengthening its financial position. A lower financial leverage ratio generally indicates lower financial risk and higher solvency for the company, as it implies a lower proportion of debt in its capital structure.
The company's ability to consistently decrease its financial leverage ratio over time may signal prudent financial management and a focus on optimizing its capital structure. However, it is essential to monitor the trend in the financial leverage ratio alongside other financial metrics to gain a comprehensive understanding of Applied Materials Inc's overall financial health and performance.
Peer comparison
Jan 31, 2025