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