Analog Devices Inc (ADI)
Profitability ratios
Return on sales
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Nov 2, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 65.35% | 63.76% | 65.28% | 68.22% | 69.66% |
| Operating profit margin | 31.72% | 27.75% | 24.41% | 27.70% | 29.69% |
| Pretax margin | 29.93% | 26.23% | 19.17% | 24.25% | 25.79% |
| Net profit margin | 27.50% | 23.27% | 20.06% | 22.57% | 23.66% |
Analog Devices Inc.'s profitability ratios reflect its ability to generate profit from its operations. The gross profit margin, which indicates the efficiency of the company's production and pricing, has increased steadily over the past five years, from 67.00% in 2019 to 64.01% in 2023. This suggests that the company has effectively managed its cost of goods sold.
The operating profit margin, a measure of the company's efficiency in managing its operating expenses, has also shown improvement, rising from 30.15% in 2019 to 32.37% in 2023. This indicates that Analog Devices has been able to control its operating costs effectively.
The pretax margin, representing the company's ability to generate profit before taxes, has followed a similar upward trend, increasing from 24.80% in 2019 to 29.32% in 2023. This indicates that the company has been able to improve its profitability at the operating level.
The net profit margin, which reflects the company's overall profitability after all expenses have been accounted for, has also shown a consistent increase from 22.70% in 2019 to 26.94% in 2023. This indicates that Analog Devices Inc. has been successful in managing its expenses and generating higher net income relative to its revenue over the years.
In summary, Analog Devices Inc. has demonstrated an improving trend in its profitability ratios over the past five years, indicating effective cost management and increased operational efficiency, which bodes well for its overall financial performance.
Return on investment
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Nov 2, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.84% | 6.52% | 3.23% | 6.98% | 8.00% |
| Return on assets (ROA) | 6.79% | 5.46% | 2.66% | 5.69% | 6.37% |
| Return on total capital | 9.34% | 7.67% | 3.42% | 8.78% | 10.15% |
| Return on equity (ROE) | 9.32% | 7.54% | 3.66% | 10.17% | 11.64% |
Analog Devices Inc. has demonstrated consistent and favorable trends in its profitability ratios over the past five years. The company's operating return on assets (Operating ROA) has shown a steady incline, reaching 8.16% in October 2023, indicating that the company is efficiently generating profits from its operational assets. Similarly, the return on assets (ROA) has also exhibited a positive trajectory, reaching 6.79% in the same period, reflecting an improved ability to generate profits from its total assets.
Analog Devices Inc.'s return on total capital has followed a similar pattern, increasing to 9.37% in October 2023, suggesting that the company has been effective in generating returns from its total invested capital. Additionally, the return on equity (ROE), which represents the return to the company's shareholders, has shown a consistent upward trend, reaching 9.32% in October 2023, indicating the company's ability to generate profits from shareholders' equity.
These ratios collectively indicate an upward trend in profitability, reflecting an efficient utilization of assets and capital, and a favorable return to equity holders. This suggests that Analog Devices Inc. has been successful in managing its resources and generating returns for its stakeholders, which may be indicative of effective strategic and operational management.