Analog Devices Inc (ADI)

Return on total capital

		Nov 2, 2024	Aug 3, 2024	May 4, 2024	Feb 3, 2024	Oct 28, 2023	Jul 29, 2023	Apr 29, 2023	Jan 28, 2023	Oct 29, 2022	Jul 30, 2022	Apr 30, 2022	Jan 29, 2022	Oct 30, 2021	Jul 31, 2021	May 1, 2021	Jan 30, 2021	Oct 31, 2020	Aug 1, 2020	May 2, 2020	Feb 1, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,052,976	2,126,960	2,579,808	3,329,282	3,872,653	4,324,997	4,279,956	4,057,569	3,299,158	2,101,892	1,819,703	1,409,961	1,513,539	2,080,988	1,882,994	1,708,989	1,504,922	1,377,621	1,408,107	1,531,159
Long-term debt	US$ in thousands	6,634,310	6,655,720	6,611,680	5,946,670	5,902,460	6,437,650	6,475,650	6,543,250	6,548,620	6,252,840	6,253,220	6,253,580	6,253,210	3,824,820	—	4,747,350	5,145,100	—	—	—
Total stockholders’ equity	US$ in thousands	35,176,300	35,190,100	35,248,800	35,548,100	35,565,100	35,903,700	36,013,200	36,531,500	36,465,300	36,638,600	37,099,800	37,427,300	37,992,500	12,264,000	12,167,100	12,087,700	11,997,900	11,777,600	11,590,900	11,689,500
Return on total capital		4.91%	5.08%	6.16%	8.02%	9.34%	10.21%	10.07%	9.42%	7.67%	4.90%	4.20%	3.23%	3.42%	12.93%	15.48%	10.15%	8.78%	11.70%	12.15%	13.10%

November 2, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,052,976K ÷ ($6,634,310K + $35,176,300K)
= 4.91%

Analog Devices Inc's return on total capital has shown some fluctuations over the past several quarters. In the most recent period, ending on November 2, 2024, the return on total capital was 4.91%. This indicates a decrease from the previous quarter where it was 5.08%. However, despite this decrease, the company's return on total capital remains at a respectable level.

Looking back over the past few years, we can see that Analog Devices Inc's return on total capital has generally been positive, with some quarters showing higher performance than others. The highest return on total capital was observed on July 31, 2021, at 15.48%, while the lowest was on January 29, 2022, at 3.23%.

Overall, Analog Devices Inc appears to have maintained a consistent performance in generating returns on its total capital, with some quarters showing stronger performance than others. It is essential for the company to continue monitoring and managing its capital effectively to sustain and potentially improve its return on total capital in the future.