Applied Materials Inc (AMAT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.16 | 0.18 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.20 | 0.20 | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.23 | 0.23 | 0.24 | 0.26 | 0.28 | 0.24 |
| Debt-to-capital ratio | 0.22 | 0.25 | 0.23 | 0.24 | 0.25 | 0.27 | 0.28 | 0.29 | 0.31 | 0.31 | 0.32 | 0.31 | 0.31 | 0.31 | 0.31 | 0.32 | 0.34 | 0.36 | 0.41 | 0.35 |
| Debt-to-equity ratio | 0.29 | 0.33 | 0.30 | 0.31 | 0.33 | 0.36 | 0.39 | 0.41 | 0.45 | 0.45 | 0.47 | 0.46 | 0.45 | 0.45 | 0.45 | 0.47 | 0.52 | 0.57 | 0.69 | 0.54 |
| 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 |
Applied Materials Inc's solvency ratios show a generally stable trend over the past few quarters. The debt-to-assets ratio has been fairly consistent, ranging from 0.16 to 0.28, indicating that the company has low levels of debt relative to its total assets.
The debt-to-capital ratio and debt-to-equity ratio have shown slight increases over the same period, reaching between 0.22 to 0.41 and 0.29 to 0.69, respectively. This suggests that the company has been relying more on debt to finance its operations and investments, increasing its leverage.
The financial leverage ratio has fluctuated between 1.76 and 2.42, which indicates that the company's assets are financed mostly by debt rather than equity. A higher financial leverage ratio means higher financial risk, as the company may struggle to meet its debt obligations in the long run.
Overall, while the company's solvency ratios reflect a relatively stable financial position, the upward trend in leverage ratios highlights the increasing reliance on debt for funding, which could potentially pose risks to the company's financial stability in the future.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 34.02 | 35.93 | 36.06 | 34.86 | 33.42 | 32.62 | 33.39 | 34.20 | 34.33 | 34.58 | 34.95 | 33.14 | 29.69 | 26.24 | 21.94 | 19.19 | 18.36 | 16.68 | 15.79 | 15.35 |
Applied Materials Inc's interest coverage has been consistently strong over the given period, indicating the company's ability to cover its interest payments with its earnings. The interest coverage ratio has remained above 15 for the past few years, reflecting a healthy financial position. The trend shows a slight decrease in interest coverage in the most recent periods, but the ratio still remains well above the critical threshold of 1, suggesting that the company is comfortably able to meet its interest obligations. This stable and strong interest coverage ratio signifies that Applied Materials Inc has a low financial risk related to its debt obligations.