Analog Devices Inc (ADI)

Fixed asset turnover

		Nov 2, 2024	Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020
Revenue (ttm)	US$ in thousands	9,285,710	9,487,500	10,182,440	11,300,180	12,053,800	12,591,670	12,643,210	12,366,050	11,809,200	10,683,340	9,383,500	8,122,390	7,048,520	6,456,420	6,153,710	5,809,360	5,554,460	5,469,200	5,493,200	5,702,740
Property, plant and equipment	US$ in thousands	3,415,550	3,395,750	3,415,220	3,281,940	3,219,160	2,922,780	2,742,020	2,524,660	2,401,300	2,180,050	2,094,150	2,037,290	1,979,050	1,173,670	1,160,590	1,129,210	1,120,560	1,134,240	1,189,330	1,206,770
Fixed asset turnover		2.72	2.79	2.98	3.44	3.74	4.31	4.61	4.90	4.92	4.90	4.48	3.99	3.56	5.50	5.30	5.14	4.96	4.82	4.62	4.73

November 2, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $9,285,710K ÷ $3,415,550K
= 2.72

The fixed asset turnover ratio for Analog Devices Inc has shown a fluctuating trend over the past few quarters. The ratio measures how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio indicates better efficiency in generating sales from fixed assets.

From the data provided, we observe that the fixed asset turnover ratio has generally been on an upward trajectory from 2.72 in February 2020 to a peak of 5.50 in July 2021. This indicates an improvement in the company's ability to generate revenue from its fixed assets during this period.

After reaching its peak in July 2021, the ratio experienced some fluctuations but remained relatively high, indicating a sustained efficiency in asset utilization. The ratio dipped slightly to 4.48 in April 2022, but then recovered to 4.90 in October 2022 and remained around that level in subsequent quarters.

Overall, the trend in Analog Devices Inc's fixed asset turnover ratio suggests that the company has been effectively utilizing its fixed assets to generate revenue, with occasional fluctuations reflecting changes in business operations or investments in assets. A high and stable fixed asset turnover ratio is generally seen as a positive indicator of operational efficiency and effective resource management.