Analog Devices Inc (ADI)
Current ratio
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Nov 2, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.37 | 2.02 | 1.94 | 1.84 | 1.32 |
October 28, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $4,384,020K ÷ $3,200,970K
= 1.37
Analog Devices Inc.'s current ratio has fluctuated over the past five years, as evidenced by the following values: 1.37 in 2023, 2.02 in 2022, 1.94 in 2021, 1.84 in 2020, and 1.32 in 2019. The current ratio is a measure of a company's ability to meet its short-term liabilities with its short-term assets. A current ratio above 1 indicates that a company has more current assets than current liabilities, which is generally considered a favorable position.
In 2023, Analog Devices Inc.'s current ratio decreased to 1.37 from 2.02 in 2022. This decline indicates that the company may have experienced a decrease in its current assets relative to its current liabilities, which could potentially impact its short-term liquidity. However, a current ratio of 1.37 still suggests that the company has sufficient current assets to cover its short-term obligations.
The significant increase in the current ratio from 2019 to 2022, from 1.32 to 2.02, indicates an improvement in Analog Devices Inc.'s short-term liquidity position during this period. This trend suggests that the company enhanced its ability to meet its short-term obligations with a higher level of current assets.
Overall, while the current ratio fluctuated over the past five years, Analog Devices Inc. has generally maintained a current ratio above 1, indicating a strong ability to meet its short-term liabilities with its current assets. However, the recent decrease in the ratio from 2022 to 2023 may warrant further investigation to understand the factors contributing to this change and assess the company's short-term liquidity position.
Peer comparison
Oct 28, 2023