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Applied Materials AMAT Interest coverage

Interest coverage at other companies

KLA Corporation logo
KLA CorporationKLAC
19.9×+5.3×
Entegris logo
EntegrisENTG
2.4×-0.2×
Amkor Technology logo
Amkor TechnologyAMKR
+0.9×
Teradyne, Inc. logo
Teradyne, Inc.TER
108.9×-62.2×
MKS Instruments logo
MKS InstrumentsMKSI
2.8×+0.8×
Texas Instruments logo
Texas InstrumentsTXN
11.1×+0.3×

Other financials

Income statement

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Revenue$7.9B+11.4%
Gross profit$3.9B+13.3%
Operating income$2.5B+16.3%
Net income$2.8B+31.3%
EPS (diluted)$3.51+33.5%

Balance sheet

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Cash & equivalents$1.5B+4.0%
Total debt$7.3B+9.0%
Total equity$23.9B+26.1%
Total assets$40.3B+19.8%

Cash flow

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Operating cash flow$845.0M-46.2%
CapEx$635.0M+24.5%
Free cash flow$210.0M-80.2%

Valuation

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Market cap$470.75B+157%
Enterprise value$476.53B+151%
P/E55.3×+28.2×
P/S16.2×+9.7×

Profitability

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Gross margin49%+0.8pp
Operating margin28.6%-1.1pp
Net margin29.3%+5.3pp

Returns & leverage

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Return on equity39.7%+3.3pp
Debt / equity0.3×0.0×
Current ratio2.5×0.0×

Where this comes from

Calculated from Applied Materials’s reported figures.

Based on trailing twelve months.

The official record: Applied Materials’s 10-Q, filed May 21, 2026, on SEC EDGAR. View the filing →

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Questions, answered.

What is Applied Materials's interest coverage?
Applied Materials (AMAT) reported interest coverage of 30.2× in Q1 2026.
How has Applied Materials's interest coverage changed year-over-year?
Applied Materials's interest coverage decreased by 5.5% year-over-year, from 31.9× to 30.2×.
What is the long-term trend for Applied Materials's interest coverage?
Over 4 years (2021 to 2025), Applied Materials's interest coverage has grown at a 7.4% compound annual growth rate (CAGR), from 95.8× to 127.4×.
What does interest coverage mean?
How many times the company's operating profit covers its interest bill.
How do you interpret interest coverage?
Higher is safer; below ~2× is a warning that earnings provide little cushion against the debt burden. Debt-free companies have no interest expense and the ratio is left blank.
How does interest coverage compare across companies?
Comparable across leveraged non-financials; less relevant for net-cash companies with negligible interest.