Applied Materials (MEX:AMAT) ROCE % : 32.43% (As of Oct. 2024)

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What is Applied Materials ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Applied Materials's annualized ROCE % for the quarter that ended in Oct. 2024 was 32.43%.

Applied Materials ROCE % Historical Data

The historical data trend for Applied Materials's ROCE % 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.

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Applied Materials ROCE % Chart

Applied Materials Annual Data

Trend

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Oct24

ROCE %

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28.40

36.87

39.61

35.65

35.75

Applied Materials Quarterly Data
	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24	Apr24	Jul24	Oct24
ROCE %	Get a 7-Day Free Trial															40.64	38.55	33.05	32.75	32.43

Applied Materials ROCE % Calculation

Applied Materials's annualized ROCE % for the fiscal year that ended in Oct. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2024 )		(A: Oct. 2023 )		(A: Oct. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2024 )		(A: Oct. 2023 )		(A: Oct. 2024 )
	=	168243.728	/	( ( (554750.637 - 133086.716)	+	(689260.442 - 169625.895) )	/ 2 )
	=	168243.728	/	( (421663.921	+	519634.547)	/ 2 )
	=	168243.728	/	470649.234
	=	35.75 %

Applied Materials's ROCE % of for the quarter that ended in Oct. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Oct. 2024 )		(Q: Jul. 2024 )		(Q: Oct. 2024 )
	=	163936.976	/	( ( (625750.083 - 134422.73)	+	(689260.442 - 169625.895) )	/ 2 )
	=	163936.976	/	( ( 491327.353	+	519634.547 )	/ 2 )
	=	163936.976	/	505480.95
	=	32.43 %

(1) Note: The EBIT data used here is four times the quarterly (Oct. 2024) EBIT data.

Applied Materials (MEX:AMAT) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Applied Materials ROCE % Related Terms

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Applied Materials Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Applied Materials Inc (MEX:AMAT) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

AMAT:USA 1AMAT:Italy AP2d:UK 0R1A:UK AP2:Germany AP2:Germany AP2:Germany AP2:Germany A1MT34:Brazil AMAT:Austria AMAT:Argentina

Address

3050 Bowers Avenue, P.O. Box 58039, Santa Clara, CA, USA, 95052-8039

Website

https://www.appliedmaterials.com

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.