Analog Devices Inc (ADI)
Liquidity ratios
| 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 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.51 | 1.37 | 1.71 | 1.79 | 2.12 | 2.02 | 1.92 | 1.99 | 2.09 | 1.94 | 1.11 | 1.05 | 1.57 | 1.84 | 1.47 | 1.30 | 1.08 | 1.32 | 1.35 | 1.52 |
| Quick ratio | 0.86 | 0.86 | 0.98 | 1.06 | 1.36 | 1.53 | 1.34 | 1.44 | 1.54 | 1.24 | 0.86 | 0.50 | 1.17 | 1.38 | 0.70 | 0.50 | 0.37 | 0.82 | 0.41 | 0.52 |
| Cash ratio | 0.45 | 0.40 | 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 | 0.40 | 0.41 | 0.52 |
Analog Devices Inc.'s liquidity ratios show fluctuating trends over the past eight quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has ranged from a low of 1.37 to a high of 2.12 during this period. The current ratio generally decreased from Q1 2023 to Q4 2023 but started to improve again by Q1 2024, indicating a strengthening liquidity position.
The quick ratio, a more stringent measure of liquidity that excludes inventory from current assets, has also shown variability, ranging from a low of 0.86 to a high of 1.53 over the same period. The quick ratio followed a similar trend as the current ratio, decreasing through Q4 2023 before rebounding in Q1 2024.
The cash ratio, which represents the company's ability to cover current liabilities with its cash and cash equivalents, has fluctuated between 0.40 and 0.84. Analog Devices Inc.'s cash ratio showed a significant drop in Q4 2023 before recovering in Q1 2024.
Overall, while the current, quick, and cash ratios of Analog Devices Inc. fluctuated over the past eight quarters, the company appears to maintain a generally healthy liquidity position. However, management should continue to monitor these ratios to ensure sufficient liquidity to meet short-term obligations.
See also:
Analog Devices Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash conversion cycle | days | 101.66 | 105.65 | 106.59 | 103.54 | 100.86 | 98.11 | 89.14 | 94.53 | 104.79 | 135.16 | 88.97 | 39.87 | 95.76 | 91.90 | 44.91 | 44.85 | 42.38 | 81.67 | 75.27 | 71.45 |
The cash conversion cycle of Analog Devices Inc. has shown some fluctuations over the past eight quarters. The cycle represents the time it takes for the company to convert its investments in inventory and other resources into cash flows from sales.
The trend indicates that the company's cash conversion cycle has been on the rise from Q1 2023 to Q1 2024, peaking at 138.31 days in Q4 2023. This suggests that Analog Devices Inc. has been taking longer to convert its investments into cash during this period.
The highest cash conversion cycle was observed in Q4 2023, while the lowest cycle was in Q2 2022 at 109.57 days. This indicates that the company was more efficient in converting its investments into cash during Q2 2022 compared to the other quarters.
Overall, a longer cash conversion cycle may indicate inefficiencies in managing inventory, collecting receivables, or paying suppliers. Analog Devices Inc. should continue to monitor and analyze its cash conversion cycle to identify areas for improvement in its working capital management.