Analog Devices Inc (ADI)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,991,340	2,106,030	1,939,700	1,303,560	958,061	1,149,250	1,177,610	1,670,460	1,470,570	1,524,960	1,737,730	1,790,400	1,977,960	1,480,700	1,305,220	1,048,060	1,055,860	1,090,260	784,937	654,408
Short-term investments	US$ in thousands	371,822	439,667	424,117	—	0	—	—	—	454,545	—	—	—	—	105,562	94,033	91,720	86,729	82,953	—	—
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
Cash ratio		0.79	0.79	0.72	0.45	0.30	0.41	0.44	0.69	0.79	0.62	0.75	0.81	0.71	0.57	0.50	0.68	0.84	0.70	0.50	0.37

November 2, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,991,340K + $371,822K) ÷ $2,988,280K
= 0.79

The cash ratio of Analog Devices Inc has shown some variability over the past 20 quarterly periods, ranging from a low of 0.30 to a high of 0.84. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations.

Analog Devices Inc's cash ratio has generally been above 0.50, indicating that the company possesses a significant amount of cash relative to its current liabilities. This suggests that the company has a strong liquidity position and is well-equipped to meet its short-term financial obligations. However, the fluctuations in the cash ratio over time may reflect changes in the company's cash holdings and short-term liabilities.

Overall, the consistent trend of having a cash ratio above 0.50 demonstrates Analog Devices Inc's ability to maintain a solid liquidity position, which can be crucial for weathering economic uncertainties and funding day-to-day operations.