AMAT (Applied Materials) Inventory Turnover: 0.64 (As of Apr. 2026)


AMAT Applied Materials Inc AMAT
85 GF Score
Price $626.84
GF Value $217.76
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Applied Materials Inventory Turnover?

Applied Materials AMAT -6.16% 85 Inventory Turnover is 0.64 as of Apr. 2026. GuruFocus rates AMAT with a GF Score™ of 85/100 and a GF Value™ of $217.76 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Applied Materials's Cost of Goods Sold for the three months ended in Apr. 2026 was $3,963 Mil. Applied Materials's Average Total Inventories for the quarter that ended in Apr. 2026 was $6,170 Mil. Applied Materials's Inventory Turnover for the quarter that ended in Apr. 2026 was 0.64.

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 Apr. 2026 was 142.07.

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 quarter that ended in Apr. 2026 was 0.78.

Applied Materials  (NAS:AMAT) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

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 Apr. 2026 is calculated as:

Days Inventory =Average Total Inventories (Q: Apr. 2026 )/Cost of Goods Sold (Q: Apr. 2026 )*Days in Period
=6170/3963*365 / 4
=142.07

2. 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 quarter that ended in Apr. 2026 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Apr. 2026 ) / Revenue (Q: Apr. 2026 )
=6170 / 7910
=0.78

* 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.

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Applied Materials Inventory Turnover Related Terms

Applied Materials Inventory Turnover Historical Data

* Premium members only.

The historical data trend for Applied Materials's Inventory Turnover 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.

Applied Materials Inventory Turnover Chart

Applied Materials Annual Data
Trend Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23 Oct24 Oct25
Inventory Turnover
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.96 2.69 2.42 2.56 2.57

Applied Materials Quarterly Data
Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24 Oct24 Jan25 Apr25 Jul25 Oct25 Jan26 Apr26
Inventory Turnover 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 0.65 0.65 0.60 0.60 0.64
AMAT
85GF Score
Applied Materials Inc AMAT
Inventory Turnover is just one metric. See GF Score™, valuation, warning signs, and more.
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Applied Materials Inventory Turnover Calculation

Applied Materials's Inventory Turnover for the fiscal year that ended in Oct. 2025 is calculated as

Inventory Turnover (A: Oct. 2025 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Oct. 2025 ) / ((Total Inventories (A: Oct. 2024 ) + Total Inventories (A: Oct. 2025 )) / count )
=14560 / ((5421 + 5915) / 2 )
=14560 / 5668
=2.57

Applied Materials's Inventory Turnover for the quarter that ended in Apr. 2026 is calculated as

Inventory Turnover (Q: Apr. 2026 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Apr. 2026 ) / ((Total Inventories (Q: Jan. 2026 ) + Total Inventories (Q: Apr. 2026 )) / count )
=3963 / ((5997 + 6343) / 2 )
=3963 / 6170
=0.64

* 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.

Frequently Asked Questions Learn more about Inventory Turnover →
What does a Inventory Turnover of 0.64 mean?
Applied Materials (AMAT) has a Inventory Turnover of 0.64 as of Apr. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Applied Materials and its competitors.
Is Applied Materials' Inventory Turnover too high?
Applied Materials' current Inventory Turnover is 0.64. Overall, Applied Materials has a GF Score™ of 85/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Applied Materials' Inventory Turnover compare to LRCX and KLAC?
Applied Materials' Inventory Turnover of 0.64 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 Turnover for a Semiconductors company?
A good Inventory Turnover depends on the Semiconductors industry context. However, Inventory Turnover 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 Turnover mean?
A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Applied Materials and its competitors. Applied Materials's current Inventory Turnover is 0.64. 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?
Based on GuruFocus' analysis, Applied Materials (AMAT) is currently considered Significantly Overvalued. The stock's GF Value™ is $217.76, compared to a current price of $626.84 — trading 187.9% above its estimated fair value. The current Inventory Turnover is 0.64. Applied Materials' overall GF Score™ is 85/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Inventory Turnover calculated?
Inventory Turnover is calculated from a company's financial statements. For Applied Materials (AMAT), the current Inventory Turnover is 0.64 as of Apr. 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 (AMAT) Overvalued in 2026?

Based on GuruFocus' analysis, Applied Materials stock appears to be overvalued. The current stock price of $626.84 is trading 187.9% above its estimated GF Value™ of $217.76. GuruFocus considers Applied Materials to be Significantly Overvalued.

Key valuation signals for AMAT:

  • Inventory Turnover: 0.64
  • GF Value™: $217.76 vs. price of $626.84 (187.9% above fair value)
  • GF Score™: 85/100 with 6 warning signs

No single metric tells the full story. See the AMAT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

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 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.
85GF Score

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Inventory Turnover is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$626.84
Price
$217.76
GF Value