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Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Applied Materials's Average Total Inventories for the quarter that ended in Jul. 2026 was CHF5,158 Mil. Applied Materials's Revenue for the
three
months ended in Jul. 2026 was CHF7,387 Mil.
Applied Materials's Inventory-to-Revenue for the quarter that ended in Jul. 2026 was 0.70.
Applied Materials's Inventory-to-Revenue for the quarter that ended in Jul. 2026
declined
from Apr. 2026 (0.78) to Apr. 2026 (0.70)
A decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:
1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.
Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Applied Materials's Days Inventory for the
three
months ended in Jul. 2026 was 128.23.
Inventory Turnover measures how fast the company turns over its inventory within a year.
Applied Materials's Inventory Turnover for the quarter that ended in Jul. 2026 was 0.71.
An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:
1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.
Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:
1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.
More Related Terms:
1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.
Applied Materials's Days Inventory for the
three
months ended in Jul. 2026 is calculated as:
* 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.
Applied Materials Inventory-to-Revenue Related Terms
Applied Materials Inventory-to-Revenue Historical Data
* Premium members only.
The historical data trend for Applied Materials's Inventory-to-Revenue 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.
XSWX:AMAT vs LRCX, KLAC, TER: Inventory-to-Revenue Comparison
For the Semiconductor Equipment & Materials subindustry, Applied Materials's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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 Inventory-to-Revenue vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Applied Materials's Inventory-to-Revenue distribution charts can be found below:
* The bar in red indicates where Applied Materials's Inventory-to-Revenue falls into.
Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.
Applied Materials's Inventory-to-Revenue for the fiscal year that ended in Oct. 2025 is calculated as
* 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.
Applied Materials (XSWX:AMAT) has a Inventory-to-Revenue of 0.70 as of Jul. 2026. Inventory-to-Sales ratio is the total inventories divided by total sales. View historical data on Applied Materials and its competitors.
Is Applied Materials' Inventory-to-Revenue too high?
Applied Materials' current Inventory-to-Revenue is 0.70. Overall, Applied Materials has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' Inventory-to-Revenue compare to LRCX and KLAC?
Applied Materials' Inventory-to-Revenue of 0.70 can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Inventory-to-Revenue for a Semiconductors company?
A good Inventory-to-Revenue depends on the Semiconductors industry context. However, Inventory-to-Revenue should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Inventory-to-Revenue mean?
A high Inventory-to-Revenue can signal that a stock is expensive relative to its fundamentals. Inventory-to-Sales ratio is the total inventories divided by total sales. View historical data on Applied Materials and its competitors. Applied Materials's current Inventory-to-Revenue is 0.70. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Applied Materials stock overvalued right now?
Applied Materials (XSWX:AMAT) has a current Inventory-to-Revenue of 0.70. The stock's GF Value™ is CHF195.71, compared to a current price of CHF366.20 — trading 87.1% above its estimated fair value. The current Inventory-to-Revenue is 0.70. Applied Materials' overall GF Score™ is 81/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory-to-Revenue calculated?
Inventory-to-Revenue is calculated from a company's financial statements. For Applied Materials (XSWX:AMAT), the current Inventory-to-Revenue is 0.70 as of Jul. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Applied Materials (XSWX:AMAT) Overvalued in 2026?
Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued.
The current stock price of CHF366.20 is trading 87.1% above its estimated GF Value™ of CHF195.71.
Key valuation signals for XSWX:AMAT:
Inventory-to-Revenue: 0.70
GF Value™: CHF195.71 vs. price of CHF366.20 (87.1% above fair value)
No single metric tells the full story. See the XSWX:AMAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Applied Materials is the largest semiconductor wafer fabrication equipment manufacturer in the world. It has a broad portfolio spanning nearly every corner of the WFE ecosystem. Applied Materials holds leading market share 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.
81GF Score
Get the complete analysis for XSWX:AMAT
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