Analog Devices Inc (ADI)

Working capital 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
Total current assets	US$ in thousands	5,484,650	5,442,940	5,193,620	4,415,880	4,384,020	4,835,180	4,744,920	5,161,500	4,937,990	4,689,710	4,634,190	4,636,700	5,378,320	3,090,460	2,902,800	2,624,740	2,517,690	2,485,240	2,051,290	1,911,180
Total current liabilities	US$ in thousands	2,988,280	3,226,630	3,297,320	2,923,370	3,200,970	2,831,020	2,646,410	2,433,680	2,442,660	2,441,200	2,326,210	2,221,910	2,770,310	2,793,340	2,776,830	1,676,760	1,364,990	1,687,780	1,582,000	1,770,540
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

November 2, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $9,285,710K ÷ ($5,484,650K – $2,988,280K)
= 3.72

Analog Devices Inc's working capital turnover has shown fluctuations over the past few quarters, ranging from a low of 2.70 to a high of 48.85. The working capital turnover measures how efficiently a company is utilizing its working capital to generate sales revenue.

A high working capital turnover indicates that the company is effectively utilizing its current assets to support its sales activities, while a low ratio suggests inefficiency in managing working capital.

In the most recent quarter, the working capital turnover was 3.72, which indicates that for each dollar of working capital, the company generated $3.72 in sales revenue. This suggests a moderate level of efficiency in managing its working capital.

It is important for investors and analysts to monitor changes in the working capital turnover over time, as it can indicate improvements or deteriorations in the company's operational efficiency and financial health.