Analog Devices Inc (ADI)

Working capital turnover

		Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019
Revenue	US$ in thousands	12,053,800	11,813,500	6,931,870	5,409,750	5,761,990
Total current assets	US$ in thousands	4,384,020	4,937,990	5,378,320	2,517,690	1,985,130
Total current liabilities	US$ in thousands	3,200,970	2,442,660	2,770,310	1,364,990	1,508,630
Working capital turnover		10.19	4.73	2.66	4.69	12.09

October 28, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $12,053,800K ÷ ($4,384,020K – $3,200,970K)
= 10.19

The working capital turnover of Analog Devices Inc. has shown fluctuations over the past five years. The ratio has increased from 2.81 in 2021 to 10.40 in 2023, indicating a significant improvement in the company's ability to efficiently use its working capital to generate sales. This suggests that the company has been able to effectively manage its working capital and convert it into sales at a faster rate in 2023 compared to previous years. However, it's worth noting that there was a decrease in the ratio in 2022, which may indicate a temporary inefficiency in working capital management during that year. Overall, the trend in working capital turnover reflects the company's ability to utilize its resources effectively to drive sales growth.