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Applied Materials AMAT Return on invested capital

Return on invested capital at other companies

KLA Corporation logo
KLA CorporationKLAC
46.2%+6.2pp
Lam Research logo
Lam ResearchLRCX
73.6%+15.4pp
Entegris logo
EntegrisENTG
6.2%-0.4pp
Amkor Technology logo
Amkor TechnologyAMKR
9.6%+2.1pp
Teradyne, Inc. logo
Teradyne, Inc.TER
32.6%+6.0pp
MKS Instruments logo
MKS InstrumentsMKSI
9.1%+1.0pp

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 return on invested capital?
Applied Materials (AMAT) reported return on invested capital of 25.2% in Q1 2026.
How has Applied Materials's return on invested capital changed year-over-year?
Applied Materials's return on invested capital decreased by 12.5% year-over-year, from 28.9% to 25.2%.
What is the long-term trend for Applied Materials's return on invested capital?
Over 4 years (2021 to 2025), Applied Materials's return on invested capital has grown at a -4.3% compound annual growth rate (CAGR), from 129.7% to 108.7%.
What does return on invested capital mean?
The after-tax return the business earns on all the capital — debt and equity — invested in it.
How do you interpret return on invested capital?
The cleanest measure of business quality: ROIC sustained above the cost of capital creates value, below it destroys value. Compare against WACC, not against zero.
How does return on invested capital compare across companies?
Highly comparable across companies as a quality screen. Sector-sensitive definitions of invested capital mean banks/insurers are best excluded.