Analog Devices Inc (ADI)
Pretax margin
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Nov 2, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 3,608,000 | 3,098,750 | 1,328,710 | 1,311,620 | 1,485,730 |
| Revenue | US$ in thousands | 12,053,800 | 11,813,500 | 6,931,870 | 5,409,750 | 5,761,990 |
| Pretax margin | 29.93% | 26.23% | 19.17% | 24.25% | 25.79% |
October 28, 2023 calculation
Pretax margin = EBT ÷ Revenue
= $3,608,000K ÷ $12,053,800K
= 29.93%
Analog Devices Inc.'s pretax margin has shown variability over the past five years. The pretax margin increased from 23.41% in 2020 to 29.32% in 2023, indicating improved efficiency in managing operating expenses relative to sales. This rise suggests the company has been effectively controlling costs and generating higher pre-tax profits compared to sales. However, it's worth noting that in 2021, the pretax margin dropped to 18.16%, potentially indicating challenges in managing costs or lower profitability. Overall, the trend in pretax margin reflects the company's ability to generate profits before accounting for income taxes and demonstrates the potential for long-term financial stability. Further analysis of the company's operating and financial activities would be required to understand the specific drivers behind these fluctuations.
Peer comparison
Oct 28, 2023