Analog Devices Inc (ADI)

Debt-to-equity ratio

		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	Nov 2, 2019	Aug 3, 2019	May 4, 2019
Long-term debt	US$ in thousands	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	—	—	—	5,192,250	—	—
Total stockholders’ equity	US$ in thousands	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	11,709,200	11,790,200	11,742,300
Debt-to-equity ratio		0.17	0.17	0.18	0.18	0.18	0.18	0.17	0.17	0.17	0.16	0.31	0.00	0.39	0.43	0.00	0.00	0.00	0.44	0.00	0.00

February 3, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,946,670K ÷ $35,548,100K
= 0.17

Analog Devices Inc.'s debt-to-equity ratio has remained quite stable and relatively low over the past eight quarters, ranging from 0.17 to 0.20. This indicates that the company has been relying more on equity financing rather than debt to fund its operations and growth. A lower debt-to-equity ratio typically suggests a lower financial risk and greater financial stability for the company, as it implies that the company has a smaller proportion of debt compared to its equity.

The consistent maintenance of a low debt-to-equity ratio could indicate that Analog Devices Inc. has a conservative financial structure and is managing its debt levels prudently. This approach may be beneficial in terms of reducing the company's interest expenses and minimizing the potential financial risks associated with high debt levels.

Overall, the trend of the debt-to-equity ratio for Analog Devices Inc. suggests a financially sound and stable capital structure, which may be appealing to investors and creditors due to the lower risk profile associated with the company's reliance on equity financing.