Analog Devices Inc (ADI)

Return on equity (ROE)

		Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Net income	US$ in thousands	1,635,270	3,314,580	2,748,560	1,390,420	1,220,760
Total stockholders’ equity	US$ in thousands	35,176,300	35,565,100	36,465,300	37,992,500	11,997,900
ROE		4.65%	9.32%	7.54%	3.66%	10.17%

November 2, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,635,270K ÷ $35,176,300K
= 4.65%

Analog Devices Inc's return on equity (ROE) has shown fluctuations over the past five years. In the most recent fiscal year ending November 2, 2024, the ROE was 4.65%, a decrease from the previous year's 9.32%. This downward trend is also observed when comparing the ROE to two years ago, where it stood at 7.54%.

The ROE for the fiscal year ending October 31, 2020, was relatively higher at 10.17%, indicating a strong performance in terms of generating profits from shareholder equity. However, in the subsequent years, the company's ROE has experienced a decline, which suggests a potential reduction in efficiency in utilizing equity to generate profits.

Analog Devices Inc should further analyze the factors contributing to the fluctuations in ROE to identify areas for improvement and to ensure sustainable growth in shareholder value. The management may need to focus on strategies to enhance profitability and operational efficiency to drive ROE back to higher levels.