Analog Devices Inc (ADI)

Debt-to-capital ratio

		Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019
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
Debt-to-capital ratio		0.14	0.15	0.14	0.30	0.31

October 28, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,902,460K ÷ ($5,902,460K + $35,565,100K)
= 0.14

The debt-to-capital ratio of Analog Devices Inc. has shown a declining trend in recent years, indicating a relatively lower reliance on debt to finance its operations. As of October 28, 2023, the ratio stands at 0.16, which suggests that approximately 16% of the company's capital structure is attributed to debt. This ratio has decreased from 0.32 in November 2, 2019, reflecting a significant reduction in the proportion of debt relative to the company's total capital over the past four years. The declining trend in the debt-to-capital ratio indicates a strengthened financial position and reduced financial risk, as the company relies less on debt financing in comparison to its equity.