Applied Materials Inc (AMAT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.16 | 0.00 | 0.18 | 0.00 | 0.17 | 0.00 | 0.17 | 0.00 | 0.18 | 0.00 | 0.18 | 0.00 | 0.00 | 0.20 | 0.00 | 0.20 | 0.00 | 0.21 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.22 | 0.00 | 0.25 | 0.00 | 0.23 | 0.00 | 0.24 | 0.00 | 0.25 | 0.00 | 0.27 | 0.00 | 0.00 | 0.29 | 0.00 | 0.31 | 0.00 | 0.32 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.29 | 0.00 | 0.33 | 0.00 | 0.30 | 0.00 | 0.31 | 0.00 | 0.33 | 0.00 | 0.36 | 0.00 | 0.00 | 0.41 | 0.00 | 0.45 | 0.00 | 0.47 |
| 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 |
Applied Materials Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity. The Debt-to-assets ratio has remained low and stable around 0.00 to 0.20 over the analyzed periods, indicating that the company relies less on debt financing for its operations.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have been consistently low or zero, showing that the company's capital and equity contributions far outweigh its debt obligations. This implies a lower financial risk and higher flexibility in managing financial obligations.
The Financial leverage ratio has shown a declining trend from 2.20 to 1.79 over the periods, suggesting that the company is becoming less reliant on debt to finance its operations and that its equity base is strengthening.
Overall, the solvency ratios of Applied Materials Inc reflect a robust financial structure and a sound ability to meet its debt obligations while maintaining a healthy balance between debt and equity financing.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 31.74 | 30.93 | 31.24 | 32.17 | 32.81 | 35.14 | 35.54 | 36.45 | 35.87 | 33.61 | 25.23 | 24.32 | 24.89 | 25.55 | 34.44 | 33.66 | 33.39 | 32.82 | 32.70 | 33.81 |
Applied Materials Inc's interest coverage ratio has been relatively stable over the given period, ranging from a high of 36.45 to a low of 24.32. This indicates the company's ability to meet its interest obligations using its operating income remains strong, although there was a slight decline towards the end of the period. It is important to note that a higher interest coverage ratio is generally preferred as it suggests a company is in a better position to cover its interest expenses. The consistent performance of the interest coverage ratio for Applied Materials Inc demonstrates financial stability and effective management of debt obligations during the period under review.