Analog Devices Inc (ADI)

Return on equity (ROE)

		Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019
Net income	US$ in thousands	3,314,580	2,748,560	1,390,420	1,220,760	1,363,010
Total stockholders’ equity	US$ in thousands	35,565,100	36,465,300	37,992,500	11,997,900	11,709,200
ROE		9.32%	7.54%	3.66%	10.17%	11.64%

October 28, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $3,314,580K ÷ $35,565,100K
= 9.32%

Analog Devices Inc.'s return on equity (ROE) has fluctuated over the past five years. In Oct 28, 2023, the ROE stood at 9.32%, representing an increase from the previous year's 7.54%. This indicates that the company's ability to generate profit from its shareholders' equity has improved. However, the 2023 ROE remains lower than the levels observed in 2019 and 2020, which were 11.61% and 10.17% respectively. This suggests a potential decline in the company's efficiency in utilizing equity to generate profits. Despite annual variations, the company has generally maintained a positive ROE, indicating that it has been able to generate reasonable returns on the shareholders' investment.