Analog Devices Inc (ADI)
Return on total capital
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Nov 2, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,872,640 | 3,299,160 | 1,513,540 | 1,504,920 | 1,714,800 |
| Long-term debt | US$ in thousands | 5,902,460 | 6,548,620 | 6,253,210 | 5,145,100 | 5,192,250 |
| Total stockholders’ equity | US$ in thousands | 35,565,100 | 36,465,300 | 37,992,500 | 11,997,900 | 11,709,200 |
| Return on total capital | 9.34% | 7.67% | 3.42% | 8.78% | 10.15% |
October 28, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $3,872,640K ÷ ($5,902,460K + $35,565,100K)
= 9.34%
Analog Devices Inc.'s return on total capital has demonstrated variability in recent years. The return on total capital increased from 3.97% in fiscal year 2021 to 9.04% in fiscal year 2020 but then decreased to 8.26% in fiscal year 2022 before rising again to 9.37% in fiscal year 2023. This indicates an inconsistent performance in utilizing the total capital employed to generate profits. Further analysis of the company's capital structure and profitability drivers may be necessary to better understand the factors contributing to these fluctuations in return on total capital.
Peer comparison
Oct 28, 2023