undamentalytics Newsletter
Sign in

Applied Materials key statistics and ratios

In fiscal 2025, Applied Materials had return on equity of 35.5%, an operating margin of 29.2%, debt equal to 32.1% of equity and a current ratio of 2.61. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year2009Oct 20092010Oct 20102011Oct 20112012Oct 20122013Oct 20132014Oct 20142015Oct 20152016Oct 20162017Oct 20172018Oct 20182019Oct 20192020Oct 20202021Oct 20212022Oct 20222023Oct 20232024Oct 20242025Oct 2025LTMJul 2026
Gross margin28.5%38.9%41.5%38.0%39.8%42.4%40.9%41.7%45.0%45.0%43.7%44.7%47.3%46.5%46.7%47.5%48.7%49.4%
Operating margin−7.9%14.5%22.8%4.7%5.8%16.8%17.5%19.9%26.8%26.9%22.9%25.4%29.9%30.2%28.9%28.9%29.2%29.6%
Net margin−6.1%9.8%18.3%1.3%3.4%11.8%14.3%15.9%23.9%18.2%18.5%21.0%25.5%25.3%25.9%26.4%24.7%30.1%
Free-cash-flow margin1.7%16.3%21.1%19.4%5.7%17.2%9.8%21.4%23.4%18.9%19.2%19.7%20.7%17.9%28.6%27.6%20.1%18.2%
Return on equity−4.3%12.8%23.6%1.4%3.6%14.3%17.8%22.9%41.3%36.9%35.9%38.5%51.6%53.4%48.0%40.6%35.5%40.3%
Return on assets−3.2%9.1%15.5%0.8%2.1%8.5%9.7%11.5%20.7%16.4%14.8%17.5%24.4%24.8%23.9%22.0%19.8%23.2%
Asset turnover0.520.930.850.670.620.720.680.720.860.900.800.830.960.980.920.830.800.77
Current ratio2.932.343.712.252.312.472.442.303.142.702.293.002.542.162.602.512.612.42
Debt to equity2.8%13.3%22.2%27.0%27.5%24.8%75.4%47.6%56.1%78.9%72.0%51.5%44.5%44.8%34.0%36.6%32.1%30.2%
Interest cover (operating income ÷ interest)n/m65.9x40.6x4.3x4.5x16.0x16.4x13.9x19.9x19.2x14.1x18.2x29.2x34.2x32.2x31.9x30.8x33.0x
Effective tax rate—32.4%19.0%65.5%26.9%26.0%13.8%14.5%7.8%30.9%17.2%13.1%13.0%14.1%11.1%12.0%24.5%13.6%
R&D as % of revenue18.6%12.0%10.6%14.2%17.6%15.7%15.0%14.2%12.1%12.1%14.1%13.0%10.8%10.7%11.7%11.9%12.6%12.9%
SG&A as % of revenue14.7%9.9%8.6%12.3%——————————6.1%6.6%6.2%5.4%
Capital spending as % of revenue5.0%1.8%2.0%1.9%2.6%2.7%2.2%2.3%2.3%3.7%3.0%2.5%2.9%3.1%4.2%4.4%8.0%9.0%
Free cash flow ÷ net income—165.7%115.3%>999%166.4%145.4%68.8%134.4%97.9%104.2%103.7%93.5%81.1%70.7%110.8%104.3%81.4%60.7%
Dividends ÷ net income—37.2%20.6%398.2%178.1%45.2%35.4%25.8%12.2%19.9%28.5%21.7%14.2%13.4%14.2%16.6%19.8%16.3%
Dividends and buybacks ÷ free cash flow407.1%45.0%39.0%109.5%164.6%31.1%191.1%101.0%46.5%186.0%113.1%42.5%96.1%151.3%41.7%67.0%110.2%63.0%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

7 of 7 checks passed · July 26, 2026
What it owns · $43.5bn
Short-term assets $25.1bnLonger-term assets $18.4bn
What it owes, and who funded it · $43.5bn
Short-term liabilities $10.4bnLonger-term liabilities $7.5bnShareholders' equity $25.6bn
  • Short-term assets cover short-term liabilities $25.1bn of assets due within a year against $10.4bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities $25.1bn short-term assets against $7.5bn of longer-dated liabilities.
  • More cash than debt $7.0bn of cash against $6.4bn of debt.
  • Debt below 40% of shareholders' equity Debt is 25% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 46% to 25% over five years.
  • A year's operating cash flow covers at least 20% of debt $8.4bn of operating cash flow against $6.4bn of debt.
  • Operating profit covers interest at least five times over Operating income of $9.1bn against $277m of interest.

From Applied Materials's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

96 /100

Strong moat

How hard Applied Materials's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 20 / 20

    Net income has been a median 20.6% of total assets over 10 years.

  • Pricing power 16 / 20

    Gross margin has been a median 46.5%, moving by 1.8 percentage points (standard deviation) across 10 years.

  • Durability 20 / 20

    Operating margin has been a median 28.7%; its worst year was 23.1%.

  • Cash conversion 20 / 20

    Free cash flow was positive in 10 of 10 years, at a median 20.4% of revenue.

  • Discipline 20 / 20

    The diluted share count fell 13.4% over five years; stock-based pay has been a median 1.8% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

Compare with peers

Head to head: AMAT vs LRCXAMAT vs ASMLAMAT vs KLAC

More: Semiconductor Materials & Equipment stocks compared, Technology sector, rankings of US companies

Figures from Applied Materials's SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Applied Materials.