Analog Devices Inc (ADI)

Return on total capital

		Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	2,032,800	3,872,640	3,299,160	1,513,540	1,504,920
Long-term debt	US$ in thousands	6,634,310	5,902,460	6,548,620	6,253,210	5,145,100
Total stockholders’ equity	US$ in thousands	35,176,300	35,565,100	36,465,300	37,992,500	11,997,900
Return on total capital		4.86%	9.34%	7.67%	3.42%	8.78%

November 2, 2024 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,032,800K ÷ ($6,634,310K + $35,176,300K)
= 4.86%

Analog Devices Inc's return on total capital has fluctuated over the past five years, ranging from a low of 3.42% in October 2021 to a high of 9.34% in October 2023. The company's return on total capital decreased to 4.86% in November 2024. This indicates that Analog Devices Inc's ability to generate profits from its total capital employed has varied, with a general trend of inconsistency in performance over the past five years. Further analysis of the factors contributing to these fluctuations would be necessary to understand the underlying reasons for the changes in return on total capital.