Analog Devices Inc (ADI)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 1.84 | 1.69 | 1.58 | 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 |
| Quick ratio | 1.24 | 1.14 | 1.02 | 0.86 | 0.76 | 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 |
| 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 |
Analog Devices Inc's liquidity ratios have shown a mix of strengths and weaknesses over the past few quarters.
The current ratio, which measures the company's ability to pay its short-term obligations with its current assets, has generally been above 1, indicating that Analog Devices has had sufficient current assets to cover its current liabilities. The ratio has fluctuated between 1.37 and 2.12, with the company maintaining a relatively strong liquidity position over the period.
On the other hand, the quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has shown more variability. While the quick ratio has been above 1 in most quarters, indicating a more conservative liquidity position, it has dipped as low as 0.76 in some periods. This suggests that Analog Devices may have faced some challenges in quickly meeting its short-term obligations without relying on inventory.
Lastly, the cash ratio, which focuses solely on the ability to cover current liabilities with cash and cash equivalents, has generally been below 1. However, the company's cash ratio has varied between 0.30 and 0.84, indicating fluctuations in its cash reserves relative to its current liabilities.
Overall, Analog Devices Inc has maintained a relatively healthy liquidity position, as evidenced by its current ratio consistently above 1 and its ability to cover short-term obligations with its quick assets. However, the variability in the quick and cash ratios suggests the need for continued monitoring and management of liquidity resources.
See also:
Analog Devices Inc Liquidity Ratios (Quarterly Data)
Additional liquidity measure
| 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 conversion cycle | days | 111.19 | 101.92 | 95.75 | 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 |
The cash conversion cycle of Analog Devices Inc has shown fluctuations over the periods provided. The cash conversion cycle is an important metric that measures how long it takes for a company to convert its investments in inventory and other resources into cash flows from sales.
The data indicates that the cash conversion cycle has ranged from a low of 39.87 days to a high of 135.16 days over the periods provided. A lower cash conversion cycle is generally more favorable as it suggests that the company is efficiently managing its working capital and converting its resources into cash quickly.
An increasing trend in the cash conversion cycle may indicate potential issues, such as slowing sales, excess inventory, or difficulties in collecting accounts receivable. On the other hand, a decreasing trend may signal improvements in inventory management, sales efficiency, or collection processes.
It would be advisable for the company to closely monitor its cash conversion cycle and identify the factors driving the fluctuations observed. By effectively managing working capital components such as inventory levels, accounts receivable, and accounts payable, Analog Devices Inc can optimize its cash conversion cycle and improve its overall financial efficiency.