Applied Materials, Inc. (AMAT) Return on Invested Capital (ROIC): 21.96%
Is Applied Materials, Inc.’s return on invested capital (ROIC) high or low?
Applied Materials, Inc.'s return on invested capital (ROIC) of 21.96% is 22% below its 5-year average of 28.32%, near the low end of its 5-year range (21.96%–34.41%).
The return on invested capital (ROIC) for Applied Materials, Inc. (AMAT) is 21.96% as of Wednesday, June 10, 2026. It is below its 12-month average by 8.08% (23.89%).
AMAT Return on Invested Capital (ROIC) Chart
AMAT Average Return on Invested Capital (ROIC) Chart
AMAT Current vs Average Return on Invested Capital (ROIC) Chart
AMAT Return on Invested Capital (ROIC) Metrics
RETURN ON INVESTED CAPITAL (ROIC)
21.96%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
23.89%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
27.74%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
28.32%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
24.38%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
18.90%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
16.98%
CURRENT VS TTM AVG
-8.08%
CURRENT VS 3Y AVG
-20.84%
CURRENT VS 5Y AVG
-22.46%
CURRENT VS 10Y AVG
-9.94%
CURRENT VS 15Y AVG
+16.16%
CURRENT VS 20Y AVG
+29.34%
AMAT Competitors' Return on Invested Capital (ROIC)
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Applied Materials, Inc. (AMAT) | — | 21.96% | 23.89% | 27.74% | 28.32% |
| Lam Research Corporation (LRCX) | $409.14B | 34.00% | 29.55% | 30.13% | 32.11% |
| Arm Holdings plc American Depositary Shares (ARM) | $328.47B | 7.31% | 8.79% | 7.17% | 6.68% |
| Cisco Systems, Inc. (CSCO) | $470.05B | 11.66% | 11.23% | 13.98% | 13.96% |
| Palantir Technologies Inc. (PLTR) | $303.24B | 17.95% | 11.73% | 5.20% | -8.29% |
| KLA Corporation (KLAC) | $279.46B | 38.11% | 32.67% | 33.86% | 30.57% |
| International Business Machines Corporation (IBM) | $257.57B | 8.57% | 8.87% | 8.41% | 7.28% |
| Texas Instruments Incorporated (TXN) | $257.37B | 16.46% | 15.57% | 22.12% | 25.67% |
| Intel Corporation (INTC) | $536.12B | 0.00% | -3.55% | -1.38% | 1.34% |
| Marvell Technology, Inc. (MRVL) | $233.47B | 5.98% | 1.05% | -0.75% | -1.12% |
Capital Efficiency
ROIC
22.0%
ROE
35.6%
Applied Materials, Inc. Return on Invested Capital (ROIC) Formula & Definition
ROIC = NOPAT / Invested Capital
Return on invested capital measures the after-tax return a company earns on all capital (debt and equity) invested in the business.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Applied Materials, Inc. Return on Invested Capital (ROIC) FAQ
- What is the return on invested capital (ROIC) for Applied Materials, Inc. (AMAT)?
- The return on invested capital (ROIC) for AMAT stock is 21.96%.
- Is Applied Materials, Inc.'s return on invested capital (ROIC) high or low?
- Applied Materials, Inc.'s return on invested capital (ROIC) of 21.96% is 22% below its 5-year average of 28.32%, near the low end of its 5-year range (21.96%–34.41%).
- What is the TTM average return on invested capital (ROIC) for Applied Materials, Inc. (AMAT)?
- The TTM average return on invested capital (ROIC) for AMAT stock is 23.89%.
- What is the 3Y average return on invested capital (ROIC) for Applied Materials, Inc. (AMAT)?
- The 3Y average return on invested capital (ROIC) for AMAT stock is 27.74%.
- What is the 5Y average return on invested capital (ROIC) for Applied Materials, Inc. (AMAT)?
- The 5Y average return on invested capital (ROIC) for AMAT stock is 28.32%.
- What is the 10Y average return on invested capital (ROIC) for Applied Materials, Inc. (AMAT)?
- The 10Y average return on invested capital (ROIC) for AMAT stock is 24.38%.
- What is the 15Y average return on invested capital (ROIC) for Applied Materials, Inc. (AMAT)?
- The 15Y average return on invested capital (ROIC) for AMAT stock is 18.90%.
- What is the 20Y average return on invested capital (ROIC) for Applied Materials, Inc. (AMAT)?
- The 20Y average return on invested capital (ROIC) for AMAT stock is 16.98%.
Applied Materials, Inc. Return on Invested Capital (ROIC) History
| DATE | RETURN ON INVESTED CAPITAL (ROIC) |
|---|---|
| 2025-10-26 | 21.96% |
| 2024-10-27 | 25.82% |
| 2023-10-29 | 28.77% |
| 2022-10-30 | 34.41% |
| 2021-10-31 | 30.64% |
| 2020-10-25 | 21.12% |
| 2019-10-27 | 18.26% |
| 2018-10-28 | 22.62% |
| 2017-10-29 | 23.71% |
| 2016-10-30 | 16.52% |
| 2015-10-25 | 11.48% |
| 2014-10-26 | 10.87% |
| 2013-10-27 | 3.29% |
| 2012-10-28 | 3.84% |
| 2011-10-30 | 17.55% |
| 2010-10-31 | 11.61% |
| 2009-10-25 | -3.24% |
| 2008-10-26 | 11.61% |
| 2007-10-28 | 20.07% |
| 2006-10-29 | 13.98% |
| 2005-10-30 | 11.65% |
| 2004-10-31 | 13.15% |
| 2003-10-26 | -2.52% |
| 2002-10-27 | 1.89% |
| 2001-10-28 | 7.87% |
| 2000-10-29 | 26.15% |
| 1999-10-31 | 12.45% |
| 1998-10-25 | 11.49% |
| 1997-10-26 | 11.54% |
| 1996-10-27 | 21.53% |
Related Metrics
About Applied Materials, Inc.
Applied Materials, Inc. is a prominent provider of crucial manufacturing equipment, associated services, and software solutions. These offerings primarily cater to the semiconductor, display, and related high-technology industries. The company organizes its activities into three principal business segments: 1. Semiconductor Systems: This division is dedicated to the development, production, and sale of sophisticated manufacturing tools essential for fabricating semiconductor chips, also known as integrated circuits. Its comprehensive suite of technologies includes epitaxy, ion implantation, oxidation/nitridation, rapid thermal processing, physical vapor deposition, chemical vapor deposition, chemical mechanical planarization, electrochemical deposition, atomic layer deposition, etching, and selective deposition and removal processes, in addition to precision metrology and inspection instruments. 2. Applied Global Services: This segment delivers integrated solutions aimed at maximizing the performance and productivity of manufacturing facilities and their equipment. Its services encompass providing spare parts, system upgrades, maintenance support, refurbished older-generation equipment, and advanced factory automation software for semiconductor, display, and other product lines. 3. Display and Adjacent Markets: This unit focuses on supplying products for the creation of various display technologies. This includes manufacturing solutions for liquid crystal displays (LCDs), organic light-emitting diodes (OLEDs), and other display types, which are integral to a broad spectrum of consumer electronics such as televisions, computer monitors, laptops, personal computers, electronic tablets, and smartphones. Founded in 1967, Applied Materials, Inc. maintains its corporate headquarters in Santa Clara, California. The company boasts a significant international presence, conducting operations across the United States, China, Korea, Taiwan, Japan, Southeast Asia, and Europe.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- Gary E. Dickerson