Analog Devices Inc (ADI)

Fixed asset turnover

		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	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Revenue (ttm)	US$ in thousands	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	5,940,280	6,144,430	6,236,970
Property, plant and equipment	US$ in thousands	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	1,219,990	1,221,190	1,211,470
Fixed asset turnover		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	4.87	5.03	5.15

February 3, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $11,300,180K ÷ $3,281,940K
= 3.44

Analog Devices Inc.'s fixed asset turnover has shown a general decreasing trend from Q2 2022 to Q1 2024. The ratio stood at 4.66 in Q2 2022, peaked at 5.09 in Q3 2022, and has been gradually declining since then. This indicates that the company generated $4.66 to $5.09 in sales for every dollar invested in fixed assets during that period.

The recent ratio of 3.52 in Q1 2024 suggests a decline in efficiency in utilizing its fixed assets to generate sales. Although the ratio fluctuates quarter by quarter, it is essential for Analog Devices Inc. to monitor this trend closely, as a lower fixed asset turnover may indicate potential issues with asset management or declining sales relative to its fixed asset base. Further analysis, including comparison with industry benchmarks and peer companies, could provide additional insights into the company's asset utilization efficiency.