Analog Devices Inc (ADI)

Total 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
Total assets	US$ in thousands	48,228,300	48,794,500	50,302,400	52,322,100	21,468,600
Total asset turnover		0.20	0.25	0.23	0.13	0.25

November 2, 2024 calculation

Total asset turnover = Revenue ÷ Total assets
= $9,439,960K ÷ $48,228,300K
= 0.20

Total asset turnover is a financial ratio that measures a company's ability to generate revenue from its assets. It indicates how efficiently a company is utilizing its total assets to generate sales.

Analyzing the total asset turnover ratio of Analog Devices Inc from 2020 to 2024, we see fluctuations in the efficiency of asset utilization. In 2020 and 2023, the company achieved a total asset turnover ratio of 0.25, indicating that for every dollar of total assets, the company generated $0.25 in revenue. This suggests relatively efficient asset utilization.

However, in 2021, the total asset turnover dropped significantly to 0.13, signaling a decline in the company's ability to convert its assets into revenue efficiently. The ratio improved slightly in 2022 to 0.23 but remained below the levels seen in 2020 and 2023.

In 2024, the total asset turnover ratio decreased further to 0.20, indicating a decrease in the company's ability to generate sales from its assets compared to the previous year.

Overall, the trend in Analog Devices Inc's total asset turnover ratio shows fluctuations over the years, with periods of both efficient and inefficient asset utilization. Further analysis and comparison with industry benchmarks may provide additional insights into the company's operational efficiency and performance.