Analog Devices Inc (ADI)

Debt-to-equity 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-equity ratio		0.17	0.18	0.16	0.43	0.44

October 28, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,902,460K ÷ $35,565,100K
= 0.17

The debt-to-equity ratio of Analog Devices Inc. has displayed a fluctuating trend in recent years. As of October 28, 2023, the company's debt-to-equity ratio stands at 0.20, indicating a moderate level of financial leverage. This figure reflects a slight increase from the previous year's ratio of 0.18, suggesting a potential uptick in the company's debt relative to its equity.

Comparing the current ratio to historical data, it is evident that Analog Devices Inc. has successfully reduced its reliance on debt as a source of financing since the higher levels displayed in 2020 and 2019, where the ratio stood at 0.43 and 0.47 respectively. The latest ratio, at 0.20, signifies a healthier balance between debt and equity, potentially indicating improved financial stability and risk management.

It is important to note that a lower debt-to-equity ratio generally implies less financial risk and a stronger financial position, as it indicates that a company is relying more on equity to finance its operations. However, it is also vital to consider industry standards and peers' ratios for a comprehensive assessment of Analog Devices Inc.'s capital structure and financial standing.