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Applied Materials (WBO:AMAT) Inventory-to-Revenue : 0.86 (As of Jan. 2024)


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What is Applied Materials Inventory-to-Revenue?

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 Jan. 2024 was €5,302 Mil. Applied Materials's Revenue for the three months ended in Jan. 2024 was €6,157 Mil. Applied Materials's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 0.86.

Applied Materials's Inventory-to-Revenue for the quarter that ended in Jan. 2024 increased from Oct. 2023 (0.84) to Oct. 2023 (0.86)

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.

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 Jan. 2024 was 150.46.

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 Jan. 2024 was 0.61.


Applied Materials Inventory-to-Revenue Historical Data

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.

* Premium members only.

Applied Materials Inventory-to-Revenue Chart

Applied Materials Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.24 0.22 0.18 0.19 0.23

Applied Materials Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Inventory-to-Revenue 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 0.93 0.91 0.92 0.84 0.86

Competitive Comparison of Applied Materials's Inventory-to-Revenue

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's Inventory-to-Revenue Distribution in the 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.



Applied Materials Inventory-to-Revenue Calculation

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. 2023 is calculated as

Inventory-to-Revenue (A: Oct. 2023 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Oct. 2022 ) + Total Inventories (A: Oct. 2023 )) / count ) / Revenue (A: Oct. 2023 )
=( (6020.98 + 5421.575) / 2 ) / 25111.599
=5721.2775 / 25111.599
=0.23

Applied Materials's Inventory-to-Revenue for the quarter that ended in Jan. 2024 is calculated as

Inventory-to-Revenue (Q: Jan. 2024 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Oct. 2023 ) + Total Inventories (Q: Jan. 2024 )) / count ) / Revenue (Q: Jan. 2024 )
=( (5421.575 + 5183.028) / 2 ) / 6157.026
=5302.3015 / 6157.026
=0.86

* 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  (WBO:AMAT) Inventory-to-Revenue Explanation

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 Jan. 2024 is calculated as:

Days Inventory=Average Total Inventories (Q: Jan. 2024 )/Cost of Goods Sold (Q: Jan. 2024 )*Days in Period
=5302.3015/3215.754*365 / 4
=150.46

2. 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 Jan. 2024 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jan. 2024 ) / Average Total Inventories (Q: Jan. 2024 )
=3215.754 / 5302.3015
=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.


Applied Materials Inventory-to-Revenue Related Terms

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Applied Materials (WBO:AMAT) 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.