Analog Devices Inc (ADI)

Net profit margin

		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	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Net income (ttm)	US$ in thousands	2,815,832	3,314,579	3,752,375	3,624,341	3,429,958	2,748,561	1,888,022	1,642,348	1,281,980	1,390,422	1,701,261	1,560,615	1,405,406	1,220,761	1,111,929	1,111,638	1,211,879	1,363,011	1,490,172	1,536,355
Revenue (ttm)	US$ in thousands	11,300,180	12,053,800	12,591,670	12,643,210	12,366,050	11,809,200	10,683,340	9,383,500	8,122,390	7,048,520	6,456,420	6,153,710	5,809,360	5,554,460	5,469,200	5,493,200	5,702,740	5,940,280	6,144,430	6,236,970
Net profit margin		24.92%	27.50%	29.80%	28.67%	27.74%	23.27%	17.67%	17.50%	15.78%	19.73%	26.35%	25.36%	24.19%	21.98%	20.33%	20.24%	21.25%	22.95%	24.25%	24.63%

February 3, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $2,815,832K ÷ $11,300,180K
= 24.92%

Analog Devices Inc.'s net profit margin has exhibited fluctuations over the past eight quarters. The net profit margins achieved range from a low of 16.84% in Q2 2022 to a high of 29.23% in Q3 2023. In the most recent quarter, Q1 2024, the net profit margin stood at 24.34%. The company's ability to generate profits relative to its revenue has generally improved in the recent quarters compared to earlier periods, with a positive trend in the net profit margin from Q2 2022 onwards. This indicates that Analog Devices Inc. has been managing its expenses effectively and/or increasing revenues, leading to a higher proportion of revenue translating into net income. The company's ability to maintain or improve its net profit margin over time is crucial for sustaining profitability and creating value for its shareholders.