Analog Devices Inc (ADI)
Current ratio
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,484,650 | 4,384,020 | 4,937,990 | 5,378,320 | 2,517,690 |
| Total current liabilities | US$ in thousands | 2,988,280 | 3,200,970 | 2,442,660 | 2,770,310 | 1,364,990 |
| Current ratio | 1.84 | 1.37 | 2.02 | 1.94 | 1.84 |
November 2, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,484,650K ÷ $2,988,280K
= 1.84
Analog Devices Inc's current ratio has experienced fluctuations over the past five years. The current ratio measures the company's ability to meet its short-term obligations with its current assets.
In 2024, the current ratio stands at 1.84, indicating that the company has $1.84 in current assets for every $1 in current liabilities. This represents an improvement compared to the previous year (1.37), suggesting a stronger ability to cover short-term obligations.
The current ratio was highest in 2022 at 2.02, signaling a favorable financial position with a significant cushion of current assets to meet short-term liabilities. However, in 2023 and 2021, the current ratio was lower at 1.94 and 1.84 respectively, indicating a slightly weaker liquidity position compared to 2022 but still within a reasonable range.
Overall, Analog Devices Inc's current ratio has shown some variability over the past five years, but generally, it has remained above 1, indicating that the company can meet its short-term financial obligations. Investors and creditors may view the current ratio as a positive indicator of the company's liquidity and ability to manage short-term liabilities.
Peer comparison
Nov 2, 2024