Analog Devices Inc (ADI)

Operating return on assets (Operating ROA)

		Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Operating income	US$ in thousands	2,032,800	3,823,110	3,278,700	1,692,200	1,498,240
Total assets	US$ in thousands	48,228,300	48,794,500	50,302,400	52,322,100	21,468,600
Operating ROA		4.21%	7.84%	6.52%	3.23%	6.98%

November 2, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $2,032,800K ÷ $48,228,300K
= 4.21%

Analog Devices Inc's operating return on assets (operating ROA) has shown fluctuations over the past five years, as reflected in the table provided. The operating ROA was highest in Oct 28, 2023, at 7.84%, indicating that the company generated 7.84% in operating income for every dollar of assets employed during that period. This suggests efficient utilization of assets to generate operating profits.

However, in the following years, there was a decline in operating ROA, notably in Nov 2, 2024, where the operating ROA dropped to 4.21%. This decrease indicates a potential decrease in operating efficiency or profitability relative to asset utilization, which may raise concerns about the company's operational performance.

It is essential for stakeholders to monitor the trend in operating ROA over time to assess the company's ability to generate profits from its assets effectively. Further analysis and comparison with industry benchmarks may provide additional insights into Analog Devices Inc's operational efficiency and performance relative to its peers in the industry.