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Applied Materials (Applied Materials) Debt-to-EBITDA

: 0.61 (As of Jan. 2024)
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Debt-to-EBITDA measures a company's ability to pay off its debt.

Applied Materials's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $287 Mil. Applied Materials's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $5,702 Mil. Applied Materials's annualized EBITDA for the quarter that ended in Jan. 2024 was $9,812 Mil. Applied Materials's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 was 0.61.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Applied Materials's Debt-to-EBITDA or its related term are showing as below:

AMAT' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 0.68   Med: 1.12   Max: 2.19
Current: 0.68

During the past 13 years, the highest Debt-to-EBITDA Ratio of Applied Materials was 2.19. The lowest was 0.68. And the median was 1.12.

AMAT's Debt-to-EBITDA is ranked better than
65.26% of 711 companies
in the Semiconductors industry
Industry Median: 1.59 vs AMAT: 0.68

Applied Materials Debt-to-EBITDA Historical Data

The historical data trend for Applied Materials's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Applied Materials Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Debt-to-EBITDA
Get a 7-Day Free Trial Premium Member Only Premium Member Only 1.37 1.19 0.78 0.71 0.71

Applied Materials Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Debt-to-EBITDA Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.72 0.75 0.76 0.64 0.61

Competitive Comparison

For the Semiconductor Equipment & Materials subindustry, Applied Materials's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Applied Materials Debt-to-EBITDA Distribution

For the Semiconductors industry and Technology sector, Applied Materials's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Applied Materials's Debt-to-EBITDA falls into.



Applied Materials Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Applied Materials's Debt-to-EBITDA for the fiscal year that ended in Oct. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(286 + 5713) / 8469
=0.71

Applied Materials's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(287 + 5702) / 9812
=0.61

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jan. 2024) EBITDA data.


Applied Materials  (NAS:AMAT) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Applied Materials Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Applied Materials's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Applied Materials (Applied Materials) Business Description

Address
3050 Bowers Avenue, P.O. Box 58039, Santa Clara, CA, USA, 95052-8039
Applied Materials is the largest semiconductor wafer fabrication equipment, or WFE, manufacturer in the world. Applied Materials has a broad portfolio spanning nearly every corner of the WFE ecosystem. Specifically, Applied Materials holds a market share leadership position in deposition, which entails the layering of new materials on semiconductor wafers. It is more exposed to general-purpose logic chips made at integrated device manufacturers and foundries. It counts the largest chipmakers in the world as customers, including TSMC, Intel, and Samsung.
Executives
Omkaram Nalamasu officer: Senior VP, CTO C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Brice Hill officer: SVP, CFO 2100 LOGIC DRIVE, SAN JOSE CA 95124
Teri A. Little officer: SVP, CLO ONE TECHNOLOGY DRIVE, MILPITAS CA 95035
Timothy M Deane officer: GVP, Applied Global Services C/O APPLIED MATERIALS, INC., 3050 BOWERS AVE, PO BOX 58039, SANTA CLARA CA 95052
Xun Chen director 35 DORY RD., GLOUCESTER MA 01930
Kevin P March director 12500 TI BLVD, DALLAS TX 75243
Jeff Bodner officer: CVP, Corp. Controller & CAO C/O ESS TECH INC, 26440 SW PARKWAY AVE BLDG. 83, WILSONVILLE CA 97070
Gary E Dickerson director, officer: President and CEO
Ginetto Addiego officer: SVP, Engineering 4000 NORTH FIRST STREET, SAN JOSE CA 95134
Daniel Durn officer: Senior VP C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Prabu G. Raja officer: SVP, Semi. Products Group C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052
Thomas J Iannotti director C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Rani Borkar director C/O APPLIED MATERIALS, INC., 3050 BOWERS AVE, PO BOX 58039, SANTA CLARA CA 95052
Alexander Karsner director C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039
Stephen R Forrest director C/O APPLIED MATERIALS, INC., 3050 BOWERS AVENUE, P.O. BOX 58039, SANTA CLARA CA 95052-8039