Analog Devices Inc (ADI)

Quick ratio

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 US$ in thousands 1,991,340 2,106,030 1,939,700 1,303,560 958,061 1,149,250 1,177,610 1,670,460 1,470,570 1,524,960 1,737,730 1,790,400 1,977,960 1,480,700 1,305,220 1,048,060 1,055,860 1,090,260 784,937 654,408
Short-term investments US$ in thousands 371,822 439,667 424,117 0 454,545 105,562 94,033 91,720 86,729 82,953
Receivables US$ in thousands 1,336,330 1,127,160 1,004,630 1,196,720 1,469,730 1,616,240 1,616,260 1,629,870 1,800,460 1,742,650 1,608,250 1,636,930 1,459,060 823,163 826,964 737,536
Total current liabilities US$ in thousands 2,988,280 3,226,630 3,297,320 2,923,370 3,200,970 2,831,020 2,646,410 2,433,680 2,442,660 2,441,200 2,326,210 2,221,910 2,770,310 2,793,340 2,776,830 1,676,760 1,364,990 1,687,780 1,582,000 1,770,540
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

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, also known as the acid-test ratio, measures a company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that a company has enough liquid assets to cover its current liabilities.

Analyzing Analog Devices Inc's quick ratio over the past 20 quarters, we observe fluctuations in the ratio. The quick ratio has ranged from 0.37 to 1.54 during this period.

The trend in the quick ratio shows variability, with some quarters exhibiting ratios below 1, indicating a potential liquidity challenge in meeting short-term obligations with liquid assets alone. However, there are also quarters where the quick ratio exceeds 1, suggesting a relatively healthier position in terms of short-term liquidity.

It is essential to consider the industry norms and compare Analog Devices Inc's quick ratio with its peers to gain a better understanding of its liquidity position. Additionally, further analysis of the company's cash flow and working capital management practices would provide valuable insights into its ability to meet short-term obligations efficiently.


Peer comparison

Nov 2, 2024


See also:

Analog Devices Inc Quick Ratio (Quarterly Data)