Analog Devices Inc (ADI)

Fixed asset turnover

		Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Revenue	US$ in thousands	9,439,960	12,053,800	11,813,500	6,931,870	5,409,750
Property, plant and equipment	US$ in thousands	3,415,550	3,219,160	2,401,300	1,979,050	1,120,560
Fixed asset turnover		2.76	3.74	4.92	3.50	4.83

November 2, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $9,439,960K ÷ $3,415,550K
= 2.76

Analog Devices Inc's fixed asset turnover ratio has fluctuated over the past five years, ranging from a low of 2.76 in November 2024 to a high of 4.92 in October 2022. This ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio suggests that the company is generating more revenue from its fixed assets, which is generally seen as a positive sign of operational efficiency. The decrease in the fixed asset turnover ratio in November 2024 compared to the previous year may indicate a decrease in the company's efficiency in generating revenue from its fixed assets. It would be beneficial to further investigate the reasons behind this decline to determine if there are any underlying operational issues affecting the company's asset utilization. Overall, the trend in Analog Devices Inc's fixed asset turnover ratio shows some variability, and ongoing monitoring is advisable to assess the company's operational efficiency.