Analog Devices Inc (ADI)

Quick ratio

		Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Cash	US$ in thousands	1,991,340	958,061	1,470,570	1,977,960	1,055,860
Short-term investments	US$ in thousands	371,822	0	454,545	—	86,729
Receivables	US$ in thousands	1,336,330	1,469,730	1,800,460	1,459,060	737,536
Total current liabilities	US$ in thousands	2,988,280	3,200,970	2,442,660	2,770,310	1,364,990
Quick ratio		1.24	0.76	1.53	1.24	1.38

November 2, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,991,340K + $371,822K + $1,336,330K) ÷ $2,988,280K
= 1.24

The quick ratio of Analog Devices Inc has fluctuated over the past five years, ranging from as low as 0.76 to as high as 1.53. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has enough liquid assets to cover its current liabilities.

Analog Devices Inc quick ratio was below 1 in two out of the five years shown, indicating that in those years, the company may have faced potential liquidity challenges in meeting its short-term obligations. However, the quick ratio improved in the other three years, reaching as high as 1.53, which suggests a healthier liquidity position.

Overall, the trend in Analog Devices Inc quick ratio shows variability, highlighting the importance of monitoring the company's liquidity position to ensure it can meet its short-term financial commitments effectively.