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.