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Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

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07ecb62f5ed259f8fda5cd8726079990bc035d1e9fcb5f55d0f28adf475a118a

Days sales outstanding of accounts receivable (days)

3e0e418ca2d8de3b4df85ff4f944d5dd939817a2abfc057a1dd91525acb9f8b3

Net Income (USD, millions)

Depreciation and Amortization (USD, millions)

Share-Based Compensation (USD, millions)

Other Adjustments (USD, millions)

Cash Provided by Operating Activities (USD, millions)

Cash Paid for Acquisitions, Net of Cash Acquired (USD, millions)

Proceeds from Sales and Maturities of Investments (USD, millions)

Purchases of Investments (USD, millions)

Cash Used in Investing Activities (USD, millions)

Proceeds from Commercial Paper (USD, millions)

Repayments of Commercial Paper (USD, millions)

Proceeds from Common Stock Issuances (USD, millions)

Common Stock Repurchases (USD, millions)

Tax Withholding Payments for Vested Equity Awards (USD, millions)

Payments of Dividends to Stockholders (USD, millions)

Repayments of Principals on Finance Leases (USD, millions)

Cash Used in Financing Activities (USD, millions)

Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash Equivalents (USD, millions)

Cash Payments for Income Taxes (USD, millions)

Cash Refunds from Income Taxes (USD, millions)

Cash Payments for Interest (USD, millions)

Deferred Income Taxes (USD, millions)

Cash, Cash Equivalents and Restricted Cash Equivalents - Beginning of Period (USD, millions)

Cash, Cash Equivalents and Restricted Cash Equivalents - End of Period (USD, millions)

Cash and Cash Equivalents (USD, millions)

Restricted Cash Equivalents Included in Deferred Income Taxes and Other Assets (USD, millions)

Total Cash, Cash Equivalents, and Restricted Cash Equivalents (USD, millions)

b5d195970c2d19e39b9f36cf8e813958d384c92eafff5445597c731b5d51699f

Cash and cash equivalents (USD, millions)

Short-term investments (USD, millions)

Accounts receivable, net (USD, millions)

Inventories (USD, millions)

Other current assets (USD, millions)

Total current assets (USD, millions)

Long-term investments (USD, millions)

Property, plant and equipment, net (USD, millions)

Goodwill (USD, millions)

Purchased technology and other intangible assets, net (USD, millions)

Deferred income taxes and other assets (USD, millions)

Total assets (USD, millions)

Short-term debt (USD, millions)

Accounts payable and accrued expenses (USD, millions)

Contract liabilities (USD, millions)

Total current liabilities (USD, millions)

Long-term debt (USD, millions)

Other liabilities (USD, millions)

Total liabilities (USD, millions)

Total stockholders’ equity (USD, millions)

Total liabilities and stockholders’ equity (USD, millions)

5317d45c4ce3c7b72b8f80cdcd2b55f3e6b7403dff92fa874af40f5b8f4c0cda

The **jump in cash and cash equivalents** in Q3 2024 is primarily due to **strong cash generated by operating activities**. Specifically, Applied Materials generated **$6,102 million** in cash from operations during the nine months ended July 28, 2024, which more than offset the **$1,256 million** used in investing activities and the **$2,701 million** used in financing activities. This strong operating cash flow led to an increase in cash and cash equivalents from **$6,132 million** as of October 29, 2023, to **$8,288 million** as of July 28, 2024.  **[0000006951-24-000032_amat-20240728.htm:44]** **[0000006951-24-000032_amat-20240728.htm:3]** **[0000006951-24-000032_amat-20240728.htm:5]** 

Why did Cash and cash equivalents jump in Q3 2024?

The increase in Total assets to **\$34,409 million** in Q4 2024 was primarily driven by a significant rise in **cash and cash equivalents** (up from **\$6,132 million** to **\$8,022 million**), increases in both **short-term investments** (from **\$737 million** to **\$1,449 million**) and **long-term investments** (from **\$2,281 million** to **\$2,787 million**), as well as a growth in the net value of **property, plant, and equipment** (from **\$2,723 million** to **\$3,339 million**).  **[0000006951-24-000044_amat-20241027.htm:83]** 

What drove Total assets to reach 34,409 in Q4 2024?

The available documents show that short-term debt increased from **$100 million** in October 2023 to **$799 million** in October 2024, but they do not provide specific reasons for this spike. The financial statements and accompanying notes do not elaborate on the nature or purpose of the additional debt.  **[0000006951-24-000032_amat-20240728.htm:3]** **[0000006951-24-000044_amat-20241027.htm:83]** 

Why did Short-term debt spike in Q4 2024?

The documents indicate that while **Applied Materials, Inc.** experienced an increase in long-term debt from **$5,461 million** to **$6,158 million** between October 29, 2023 and July 28, 2024, they do not provide specific reasons for this change.  **[0000006951-24-000032_amat-20240728.htm:3]** 

What caused Long-term debt to increase in Q3 2024?

b112ecaef714fab6b57d0e30f0fd9d05da05dfd8a0f796e85f3681afec75fb62

Operating cash flow was lower in Q2 2024 because the company experienced **higher payments for income taxes**—with cash tax payments rising significantly (from **$221 million** to **$606 million**)—as well as **lower new billings for products and services** and **reduced collections of customer receivable balances**. These elements combined to decrease the overall cash inflows from operating activities, although the impact was partially mitigated by **lower payments to vendors**.  **[0000006951-24-000022_amat-20240428.htm:43]** **[0000006951-24-000022_amat-20240428.htm:5]** **[0000006951-24-000032_amat-20240728.htm:44]** 

Why was Operating Cash Flow so low in Q2 2024?

The spike in Q4 2024’s operating cash flow was primarily driven by **adjustments for non-cash items** and a significant improvement in the **net change in operating assets and liabilities**. Despite a decrease in net income from **$2,004 million** in Q4 2023 to **$1,731 million** in Q4 2024, the negative impact was offset by a negative adjustment in deferred income taxes of **$(248) million** (compared to a positive **$198 million** in Q4 2023) and, importantly, by a favorable change in working capital components—reflected in a **$595 million** positive adjustment in Q4 2024 versus a **$(743) million** change in Q4 2023.  **[0000006951-24-000037_exhibit991q42024earningsre.htm:5]** 

What factors contributed to the spike in Operating Cash Flow in Q4 2024?

2a2fa0ce94e6a4d6764bbd7e0eb01593d8a58914e39dfce0a97081e170e1adc5

In Q1 2024, **Interest and Other Income** was notably high because it was **primarily driven by a higher net gain on equity investments** along with **increased interest income resulting from higher market interest rates** compared to the previous year.  **[0000006951-24-000012_amat-20240128.htm:33]** 

Why was Interest and Other Income so high in Q1 2024?

In **Q1 2024**, the spike in General and Administrative expenses was driven by **higher professional fees** and a significant **increase in share-based compensation expense**—which rose from **$23 million** in Q1 2023 to **$64 million** in Q1 2024—resulting in an overall increase of **$69 million**.  **[0000006951-24-000012_amat-20240128.htm:32]** 

What drove the spike in G&A expenses in Q1 2024?

In Q4 2024, the **$322 million revenue jump** was driven primarily by several factors. **Semiconductor Systems revenue grew by 6%** year-over-year, propelled by strong demand in leading-edge foundry-logic and gate-all-around nodes, while **Applied Global Services achieved a record revenue of $1.64 billion**, up 11%. In addition, **favorable product mix and operational improvements** enhanced the non-GAAP gross margin to 47.5%, and **increased revenue from China** (contributing 30% of total revenue) further supported the growth despite some declines in DRAM sales.  **[AMAT_3408747_4]** 

What contributed to the revenue jump in Q4 2024?

Interest and Other Income turned negative in Q4 2024 because, while the company experienced **higher interest income** due to **higher cash balances** and **lower impairment on equity investments**, these gains were more than offset by a **higher net loss on equity investments**. This net loss was significant enough to drive the overall figure to a negative **(–85.00 USD million)** despite the positive aspects.  **[0000006951-24-000044_amat-20241027.htm:57]** **[0000006951-24-000044_amat-20241027.htm:82]** 

Applied Materials Inc (AMAT)

Financials