Capital Intensity
Score how much of a company is physical plant, inventory, and equipment, whether that base is being maintained, and whether the shares have tangible backing.
Applied Materials Inc
Physical assets are 30.4% of total assets, a mixed footprint. Capex is 5.20x depreciation and free cash flow yield is still positive, which fits a physical base that is being replaced or expanded without consuming all of its cash. ROIC is 33.1%, above an 8% cost-of-capital hurdle.
Technology and communication names are often asset-light, with fixed-asset turnover above 5x. This name is at 5.54x.
Physical asset ratio
30.4%Physical asset ratio · 2025-10-31(Net PP&E + inventory) / total assetsNet PP&E$5.12BpropertyPlantAndEquipmentNetInventory$5.92BinventoryTotal assets$36.30BtotalAssetsResult 30.4%
Net PP&E plus inventory, divided by total assets. Above 50% is a heavy footprint.
Fixed asset turnover
5.54xFixed asset turnover · 2025-10-31Revenue / net PP&ERevenue$28.37BtotalRevenueNet PP&E$5.12BpropertyPlantAndEquipmentNetResult 5.54x
Revenue per dollar of the physical asset base.
Capex / D&A
5.20xCapex / D&A · 2025-10-31Capital expenditures / depreciation and amortizationCapex$2.26BcapitalExpendituresD&A$435.00MdepreciationAndAmortizationResult 5.20x
Above 1.0x means the physical base is being replaced or expanded.
Tangible book / share
$20.40Tangible book / share · 2025-10-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$36.30BtotalAssetsGoodwill$3.71BgoodWillIntangibles$226.00MintangibleAssetsLiabilities$15.88BtotalLiabTangible book$16.48BShares808,000,000commonStockSharesOutstandingResult $20.40
Assets minus goodwill, intangibles, and liabilities, per share.
Price / tangible book
20.67xPrice / tangible bookPrice / tangible book per sharePrice$421.66Latest quoteTangible book / share$20.402025-10-31Result 20.67x
Price $421.66.
Fixed-charge coverage
20.91xFixed-charge coverage · 2025-10-31(EBITDA − capex) / (interest + short-term debt)EBITDA$9.98BebitdaCapex$2.26BcapitalExpendituresInterest$269.00MinterestExpenseShort-term debt$100.00MshortLongTermDebtEBITDA − capex$7.72BPrincipal due is the current portion of debt.Result 20.91x
EBITDA minus capex, divided by interest plus short-term debt.
FCF yield
1.7%Free cash flow yield · 2025-10-31Latest free cash flow / current market capFree cash flow$5.70BfreeCashFlowMarket cap$334.63BMarketCapitalizationResult 1.7%
Latest free cash flow divided by current market cap ($334.63B).
ROIC
33.1%ROIC · 2025-10-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$8.29BoperatingIncomeTax expense$2.27BincomeTaxExpensePretax income$9.27BincomeBeforeTaxTax rate24.5%Equity$20.42BtotalStockholderEquityDebt$7.05BshortLongTermDebtTotalCash$8.57BcashAndShortTermInvestmentsInvested capital$18.89BResult 33.1%
After-tax operating income over equity plus debt minus cash.
Operating income / net PP&E is 1.62x.
Footprint and return
Turnover and reinvestment
| Year | Physical | FAT | Capex/D&A | TBV/sh | Coverage | FCF | ROIC | EBIT/PP&E |
|---|---|---|---|---|---|---|---|---|
| 2018 | 28.9%Physical asset ratio · 2018-10-31(Net PP&E + inventory) / total assetsNet PP&E$1.41BpropertyPlantEquipmentInventory$3.72BinventoryTotal assets$17.77BtotalAssetsResult 28.9% | 11.87xFixed asset turnover · 2018-10-31Revenue / net PP&ERevenue$16.71BtotalRevenueNet PP&E$1.41BpropertyPlantEquipmentResult 11.87x | 1.36xCapex / D&A · 2018-10-31Capital expenditures / depreciation and amortizationCapex$622.00McapitalExpendituresD&A$457.00MdepreciationAndAmortizationResult 1.36x | $3.18Tangible book / share · 2018-10-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$17.77BtotalAssetsGoodwill$3.37BgoodWillIntangibles$213.00MintangibleAssetsLiabilities$10.93BtotalLiabTangible book$3.26BShares1,026,000,000commonStockSharesOutstandingResult $3.18 | 2.28xFixed-charge coverage · 2018-10-31(EBITDA − capex) / (interest + short-term debt)EBITDA$5.08BebitdaCapex$622.00McapitalExpendituresInterest$234.00MinterestExpenseShort-term debt$1.73BshortTermDebtEBITDA − capex$4.46BPrincipal due is short-term debt.Result 2.28x | $3.17BFree cash flow · 2018-10-31Reported free cash flowOperating cash flow$3.79BtotalCashFromOperatingActivitiesCapex$622.00McapitalExpendituresFree cash flow$3.17BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $3.17B | 31.5%ROIC · 2018-10-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$4.49BoperatingIncomeTax expense$1.36BincomeTaxExpensePretax income$4.40BincomeBeforeTaxTax rate30.9%Equity$6.84BtotalStockholderEquityDebt$7.03BshortLongTermDebtTotalCash$4.03BcashAndShortTermInvestmentsInvested capital$9.84BResult 31.5% | 3.19xEBIT / PP&E · 2018-10-31Operating income / net PP&EOperating income$4.49BoperatingIncomeNet PP&E$1.41BpropertyPlantEquipmentResult 3.19x |
| 2019 | 26.3%Physical asset ratio · 2019-10-31(Net PP&E + inventory) / total assetsNet PP&E$1.53BpropertyPlantEquipmentInventory$3.47BinventoryTotal assets$19.04BtotalAssetsResult 26.3% | 9.55xFixed asset turnover · 2019-10-31Revenue / net PP&ERevenue$14.61BtotalRevenueNet PP&E$1.53BpropertyPlantEquipmentResult 9.55x | 1.21xCapex / D&A · 2019-10-31Capital expenditures / depreciation and amortizationCapex$441.00McapitalExpendituresD&A$363.00MdepreciationAndAmortizationResult 1.21x | $4.94Tangible book / share · 2019-10-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$19.04BtotalAssetsGoodwill$3.40BgoodWillIntangibles$156.00MintangibleAssetsLiabilities$10.81BtotalLiabTangible book$4.67BShares945,000,000commonStockSharesOutstandingResult $4.94 | 4.09xFixed-charge coverage · 2019-10-31(EBITDA − capex) / (interest + short-term debt)EBITDA$3.87BebitdaCapex$441.00McapitalExpendituresInterest$237.00MinterestExpenseShort-term debt$600.00MshortTermDebtEBITDA − capex$3.43BPrincipal due is short-term debt.Result 4.09x | $2.81BFree cash flow · 2019-10-31Reported free cash flowOperating cash flow$3.25BtotalCashFromOperatingActivitiesCapex$441.00McapitalExpendituresFree cash flow$2.81BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $2.81B | 28.0%ROIC · 2019-10-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$3.35BoperatingIncomeTax expense$563.00MincomeTaxExpensePretax income$3.27BincomeBeforeTaxTax rate17.2%Equity$8.21BtotalStockholderEquityDebt$5.31BshortLongTermDebtTotalCash$3.62BcashAndShortTermInvestmentsInvested capital$9.91BResult 28.0% | 2.19xEBIT / PP&E · 2019-10-31Operating income / net PP&EOperating income$3.35BoperatingIncomeNet PP&E$1.53BpropertyPlantEquipmentResult 2.19x |
| 2020 | 24.6%Physical asset ratio · 2020-10-31(Net PP&E + inventory) / total assetsNet PP&E$1.60BpropertyPlantEquipmentInventory$3.90BinventoryTotal assets$22.35BtotalAssetsResult 24.6% | 10.72xFixed asset turnover · 2020-10-31Revenue / net PP&ERevenue$17.20BtotalRevenueNet PP&E$1.60BpropertyPlantEquipmentResult 10.72x | 1.12xCapex / D&A · 2020-10-31Capital expenditures / depreciation and amortizationCapex$422.00McapitalExpendituresD&A$376.00MdepreciationAndAmortizationResult 1.12x | $7.54Tangible book / share · 2020-10-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$22.35BtotalAssetsGoodwill$3.47BgoodWillIntangibles$153.00MintangibleAssetsLiabilities$11.78BtotalLiabTangible book$6.96BShares923,000,000commonStockSharesOutstandingResult $7.54 | 14.32xFixed-charge coverage · 2020-10-31(EBITDA − capex) / (interest + short-term debt)EBITDA$4.78BebitdaCapex$422.00McapitalExpendituresInterest$240.00MinterestExpenseShort-term debt$64.00MshortTermDebtEBITDA − capex$4.35BPrincipal due is short-term debt.Result 14.32x | $3.38BFree cash flow · 2020-10-31Reported free cash flowOperating cash flow$3.80BtotalCashFromOperatingActivitiesCapex$422.00McapitalExpendituresFree cash flow$3.38BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $3.38B | 36.6%ROIC · 2020-10-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$4.37BoperatingIncomeTax expense$547.00MincomeTaxExpensePretax income$4.17BincomeBeforeTaxTax rate13.1%Equity$10.58BtotalStockholderEquityDebt$5.51BshortLongTermDebtTotalCash$5.74BcashAndShortTermInvestmentsInvested capital$10.35BResult 36.6% | 2.72xEBIT / PP&E · 2020-10-31Operating income / net PP&EOperating income$4.37BoperatingIncomeNet PP&E$1.60BpropertyPlantEquipmentResult 2.72x |
| 2021 | 24.2%Physical asset ratio · 2021-10-31(Net PP&E + inventory) / total assetsNet PP&E$1.93BpropertyPlantEquipmentInventory$4.31BinventoryTotal assets$25.83BtotalAssetsResult 24.2% | 11.93xFixed asset turnover · 2021-10-31Revenue / net PP&ERevenue$23.06BtotalRevenueNet PP&E$1.93BpropertyPlantEquipmentResult 11.93x | 1.70xCapex / D&A · 2021-10-31Capital expenditures / depreciation and amortizationCapex$668.00McapitalExpendituresD&A$394.00MdepreciationAndAmortizationResult 1.70x | $9.43Tangible book / share · 2021-10-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$25.83BtotalAssetsGoodwill$3.48BgoodWillIntangibles$104.00MintangibleAssetsLiabilities$13.58BtotalLiabTangible book$8.66BShares919,000,000commonStockSharesOutstandingResult $9.43 | 21.75xFixed-charge coverage · 2021-10-31(EBITDA − capex) / (interest + short-term debt)EBITDA$7.39BebitdaCapex$668.00McapitalExpendituresInterest$236.00MinterestExpenseShort-term debt$73.00MshortTermDebtEBITDA − capex$6.72BPrincipal due is short-term debt.Result 21.75x | $4.77BFree cash flow · 2021-10-31Reported free cash flowOperating cash flow$5.44BtotalCashFromOperatingActivitiesCapex$668.00McapitalExpendituresFree cash flow$4.77BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $4.77B | 48.7%ROIC · 2021-10-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$6.89BoperatingIncomeTax expense$883.00MincomeTaxExpensePretax income$6.77BincomeBeforeTaxTax rate13.0%Equity$12.25BtotalStockholderEquityDebt$5.53BshortLongTermDebtTotalCash$5.46BcashAndShortTermInvestmentsInvested capital$12.31BResult 48.7% | 3.56xEBIT / PP&E · 2021-10-31Operating income / net PP&EOperating income$6.89BoperatingIncomeNet PP&E$1.93BpropertyPlantEquipmentResult 3.56x |
| 2022 | 32.3%Physical asset ratio · 2022-10-31(Net PP&E + inventory) / total assetsNet PP&E$2.70BpropertyPlantAndEquipmentNetInventory$5.93BinventoryTotal assets$26.73BtotalAssetsResult 32.3% | 9.56xFixed asset turnover · 2022-10-31Revenue / net PP&ERevenue$25.79BtotalRevenueNet PP&E$2.70BpropertyPlantAndEquipmentNetResult 9.56x | 1.77xCapex / D&A · 2022-10-31Capital expenditures / depreciation and amortizationCapex$787.00McapitalExpendituresD&A$444.00MdepreciationAndAmortizationResult 1.77x | $9.30Tangible book / share · 2022-10-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$26.73BtotalAssetsGoodwill$3.70BgoodWillIntangibles$339.00MintangibleAssetsLiabilities$14.53BtotalLiabTangible book$8.16BShares877,000,000commonStockSharesOutstandingResult $9.30 | 23.87xFixed-charge coverage · 2022-10-31(EBITDA − capex) / (interest + short-term debt)EBITDA$8.26BebitdaCapex$787.00McapitalExpendituresInterest$228.00MinterestExpenseShort-term debt$85.00MshortTermDebtEBITDA − capex$7.47BPrincipal due is short-term debt.Result 23.87x | $4.61BFree cash flow · 2022-10-31Reported free cash flowOperating cash flow$5.40BtotalCashFromOperatingActivitiesCapex$787.00McapitalExpendituresFree cash flow$4.61BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $4.61B | 43.3%ROIC · 2022-10-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$7.79BoperatingIncomeTax expense$1.07BincomeTaxExpensePretax income$7.60BincomeBeforeTaxTax rate14.1%Equity$12.19BtotalStockholderEquityDebt$5.83BshortLongTermDebtTotalCash$2.58BcashAndShortTermInvestmentsInvested capital$15.44BResult 43.3% | 2.89xEBIT / PP&E · 2022-10-31Operating income / net PP&EOperating income$7.79BoperatingIncomeNet PP&E$2.70BpropertyPlantAndEquipmentNetResult 2.89x |
| 2023 | 29.0%Physical asset ratio · 2023-10-31(Net PP&E + inventory) / total assetsNet PP&E$3.20BpropertyPlantAndEquipmentNetInventory$5.73BinventoryTotal assets$30.73BtotalAssetsResult 29.0% | 8.28xFixed asset turnover · 2023-10-31Revenue / net PP&ERevenue$26.52BtotalRevenueNet PP&E$3.20BpropertyPlantAndEquipmentNetResult 8.28x | 2.15xCapex / D&A · 2023-10-31Capital expenditures / depreciation and amortizationCapex$1.11BcapitalExpendituresD&A$515.00MdepreciationAndAmortizationResult 2.15x | $14.58Tangible book / share · 2023-10-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$30.73BtotalAssetsGoodwill$3.73BgoodWillIntangibles$294.00MintangibleAssetsLiabilities$14.38BtotalLiabTangible book$12.32BShares845,000,000commonStockSharesOutstandingResult $14.58 | 21.75xFixed-charge coverage · 2023-10-31(EBITDA − capex) / (interest + short-term debt)EBITDA$8.46BebitdaCapex$1.11BcapitalExpendituresInterest$238.00MinterestExpenseShort-term debt$100.00MshortLongTermDebtEBITDA − capex$7.35BPrincipal due is the current portion of debt.Result 21.75x | $7.59BFree cash flow · 2023-10-31Reported free cash flowOperating cash flow$8.70BtotalCashFromOperatingActivitiesCapex$1.11BcapitalExpendituresFree cash flow$7.59BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $7.59B | 43.9%ROIC · 2023-10-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$7.65BoperatingIncomeTax expense$860.00MincomeTaxExpensePretax income$7.72BincomeBeforeTaxTax rate11.1%Equity$16.35BtotalStockholderEquityDebt$6.00BshortLongTermDebtTotalCash$6.87BcashAndShortTermInvestmentsInvested capital$15.48BResult 43.9% | 2.39xEBIT / PP&E · 2023-10-31Operating income / net PP&EOperating income$7.65BoperatingIncomeNet PP&E$3.20BpropertyPlantAndEquipmentNetResult 2.39x |
| 2024 | 26.5%Physical asset ratio · 2024-10-31(Net PP&E + inventory) / total assetsNet PP&E$3.71BpropertyPlantAndEquipmentNetInventory$5.42BinventoryTotal assets$34.41BtotalAssetsResult 26.5% | 7.32xFixed asset turnover · 2024-10-31Revenue / net PP&ERevenue$27.18BtotalRevenueNet PP&E$3.71BpropertyPlantAndEquipmentNetResult 7.32x | 3.04xCapex / D&A · 2024-10-31Capital expenditures / depreciation and amortizationCapex$1.19BcapitalExpendituresD&A$392.00MdepreciationAndAmortizationResult 3.04x | $18.01Tangible book / share · 2024-10-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$34.41BtotalAssetsGoodwill$3.73BgoodWillIntangibles$249.00MintangibleAssetsLiabilities$15.41BtotalLiabTangible book$15.02BShares834,000,000commonStockSharesOutstandingResult $18.01 | 7.26xFixed-charge coverage · 2024-10-31(EBITDA − capex) / (interest + short-term debt)EBITDA$8.79BebitdaCapex$1.19BcapitalExpendituresInterest$247.00MinterestExpenseShort-term debt$800.00MshortLongTermDebtEBITDA − capex$7.60BPrincipal due is the current portion of debt.Result 7.26x | $7.49BFree cash flow · 2024-10-31Reported free cash flowOperating cash flow$8.68BtotalCashFromOperatingActivitiesCapex$1.19BcapitalExpendituresFree cash flow$7.49BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $7.49B | 42.9%ROIC · 2024-10-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$7.87BoperatingIncomeTax expense$975.00MincomeTaxExpensePretax income$8.15BincomeBeforeTaxTax rate12.0%Equity$19.00BtotalStockholderEquityDebt$6.61BshortLongTermDebtTotalCash$9.47BcashAndShortTermInvestmentsInvested capital$16.14BResult 42.9% | 2.12xEBIT / PP&E · 2024-10-31Operating income / net PP&EOperating income$7.87BoperatingIncomeNet PP&E$3.71BpropertyPlantAndEquipmentNetResult 2.12x |
| 2025 | 30.4%Physical asset ratio · 2025-10-31(Net PP&E + inventory) / total assetsNet PP&E$5.12BpropertyPlantAndEquipmentNetInventory$5.92BinventoryTotal assets$36.30BtotalAssetsResult 30.4% | 5.54xFixed asset turnover · 2025-10-31Revenue / net PP&ERevenue$28.37BtotalRevenueNet PP&E$5.12BpropertyPlantAndEquipmentNetResult 5.54x | 5.20xCapex / D&A · 2025-10-31Capital expenditures / depreciation and amortizationCapex$2.26BcapitalExpendituresD&A$435.00MdepreciationAndAmortizationResult 5.20x | $20.40Tangible book / share · 2025-10-31(Total assets − goodwill − intangibles − liabilities) / sharesTotal assets$36.30BtotalAssetsGoodwill$3.71BgoodWillIntangibles$226.00MintangibleAssetsLiabilities$15.88BtotalLiabTangible book$16.48BShares808,000,000commonStockSharesOutstandingResult $20.40 | 20.91xFixed-charge coverage · 2025-10-31(EBITDA − capex) / (interest + short-term debt)EBITDA$9.98BebitdaCapex$2.26BcapitalExpendituresInterest$269.00MinterestExpenseShort-term debt$100.00MshortLongTermDebtEBITDA − capex$7.72BPrincipal due is the current portion of debt.Result 20.91x | $5.70BFree cash flow · 2025-10-31Reported free cash flowOperating cash flow$7.96BtotalCashFromOperatingActivitiesCapex$2.26BcapitalExpendituresFree cash flow$5.70BfreeCashFlowFree cash flow is the amount reported on the cash-flow statement.Result $5.70B | 33.1%ROIC · 2025-10-31Operating income × (1 − tax rate) / (equity + debt − cash)Operating income$8.29BoperatingIncomeTax expense$2.27BincomeTaxExpensePretax income$9.27BincomeBeforeTaxTax rate24.5%Equity$20.42BtotalStockholderEquityDebt$7.05BshortLongTermDebtTotalCash$8.57BcashAndShortTermInvestmentsInvested capital$18.89BResult 33.1% | 1.62xEBIT / PP&E · 2025-10-31Operating income / net PP&EOperating income$8.29BoperatingIncomeNet PP&E$5.12BpropertyPlantAndEquipmentNetResult 1.62x |
- Receivables are larger than the physical asset base, so a finance or credit book may sit outside the physical ratio and inside the debt used for coverage.
- Principal due is the current portion of debt.
Latest year inputs (2025)
Net PP&E: $5.12B
Inventory: $5.92B
Total assets: $36.30B
Goodwill: $3.71B
Intangibles: $226.00M
Liabilities: $15.88B
Tangible book: $16.48B
Shares: 808,000,000
Revenue: $28.37B
Capex: $2.26B
D&A: $435.00M
EBITDA: $9.98B
Interest: $269.00M
Short-term debt: $100.00M
Free cash flow: $5.70B
Operating income: $8.29B
Invested capital: $18.89B
Tax rate: 24.5%