Analog Devices Inc (ADI)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	4.13	4.38	4.36	4.31	4.18	4.02	4.20	4.49	5.02	6.74	6.62	6.44	3.86	5.12	5.17	5.27	5.26	5.26	5.46	5.52
Receivables turnover	6.95	8.42	10.14	9.44	8.20	7.79	7.82	7.59	6.56	6.13	5.83	4.96	4.83	7.84	—	7.02	7.53	—	—	—
Payables turnover	12.26	14.72	15.27	16.81	13.91	11.72	12.17	12.79	12.07	14.89	15.78	14.37	10.46	12.67	11.87	14.33	14.09	14.94	16.60	15.33
Working capital turnover	3.72	4.28	5.37	7.57	10.19	6.28	6.02	4.53	4.73	4.75	4.07	3.36	2.70	21.73	48.85	6.13	4.82	6.86	11.71	40.55

Analog Devices Inc's activity ratios provide insights into how efficiently the company is managing its assets and liabilities.

1. Inventory turnover: The company's inventory turnover ratio has been fairly consistent over time, indicating that on average, inventory is being sold and replaced around four times a year. There has been a slight increase in inventory turnover from around 4.00 to 6.74 over the past couple of years, suggesting an improvement in managing inventory levels.

2. Receivables turnover: Analog Devices Inc's receivables turnover ratio has shown some variability, ranging from 4.83 to 10.14. A higher turnover ratio indicates that the company is collecting its receivables more quickly. However, the ratio has fluctuated over time, indicating some possible inconsistencies in collecting payments from customers.

3. Payables turnover: The payables turnover ratio reflects how quickly the company pays its suppliers. Analog Devices Inc's payables turnover has fluctuated but generally remained between 10 and 16 times per year. A higher turnover ratio suggests more rapid payment to suppliers.

4. Working capital turnover: This ratio shows how efficiently the company is using its working capital to generate sales. Analog Devices Inc's working capital turnover has varied significantly, from 2.70 to 48.85, indicating fluctuations in the company's ability to generate sales relative to its working capital.

Overall, while Analog Devices Inc shows reasonable efficiency in managing its inventory and payables, there are fluctuations in receivables turnover and working capital turnover that may require further attention to optimize the company's financial performance.

Average number of days

		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
Days of inventory on hand (DOH)	days	88.45	83.35	83.63	84.72	87.38	90.88	86.87	81.29	72.70	54.12	55.11	56.64	94.52	71.25	70.62	69.27	69.34	69.34	66.84	66.18
Days of sales outstanding (DSO)	days	52.53	43.36	36.01	38.65	44.50	46.85	46.66	48.11	55.65	59.54	62.56	73.56	75.56	46.54	—	51.96	48.47	—	—	—
Number of days of payables	days	29.78	24.79	23.90	21.71	26.23	31.13	29.99	28.54	30.23	24.51	23.14	25.40	34.91	28.82	30.75	25.47	25.91	24.44	21.99	23.80

Analog Devices Inc's activity ratios, specifically Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, provide insight into how efficiently the company manages its inventory, collects its receivables, and pays its suppliers.

1. Days of Inventory on Hand (DOH) measures how many days, on average, the company holds its inventory before selling it. Over the past years, DOH has ranged from a high of 94.52 days to a low of 54.12 days. A decreasing trend in DOH indicates that Analog Devices has been more efficient in managing its inventory and converting it into sales.

2. Days of Sales Outstanding (DSO) represents the average number of days it takes for the company to collect its accounts receivable. DSO fluctuated between 36.01 days and 75.56 days. A lower DSO suggests that Analog Devices is collecting its receivables more quickly, improving its cash flow and liquidity.

3. Number of Days of Payables measures the average number of days it takes for the company to pay its suppliers. The range for this ratio has been between 21.71 days and 34.91 days. A longer payment period could indicate that Analog Devices is effectively managing its cash flow by delaying payments to suppliers to free up cash for other uses.

Overall, by analyzing these activity ratios, we can conclude that Analog Devices Inc has shown improvements in managing its inventory, collecting receivables, and paying payables efficiently over the past years, which reflects positively on its operational effectiveness and financial health.

Long-term

	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
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
Total asset turnover	0.19	0.20	0.21	0.23	0.25	0.26	0.26	0.25	0.23	0.21	0.18	0.16	0.13	0.30	0.29	0.27	0.26	0.25	0.26	0.27

Analog Devices Inc's fixed asset turnover ratio has shown improvement over the last few quarters, increasing from 2.72 in November 2024 to 4.73 in February 2020. This indicates that the company is generating more revenue for each dollar invested in fixed assets. The trend generally suggests that the company is using its fixed assets more efficiently to generate sales.

On the other hand, the total asset turnover ratio has fluctuated but remained relatively stable over the same period, varying from 0.13 in January 2023 to 0.30 in May 2021. This ratio measures the company's overall efficiency in using its total assets to generate sales. A higher ratio is generally preferred as it indicates that the company is generating more revenue per dollar of assets.

In conclusion, Analog Devices Inc has shown improvements in its fixed asset turnover ratio, indicating better efficiency in using its fixed assets to generate revenue. However, the total asset turnover ratio has varied with no clear trend, suggesting the company may need to focus on optimizing the use of its total assets to generate sales consistently.