Analog Devices Inc (ADI)

Financial leverage ratio

		Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019
Total assets	US$ in thousands	48,794,500	50,302,400	52,322,100	21,468,600	21,392,600
Total stockholders’ equity	US$ in thousands	35,565,100	36,465,300	37,992,500	11,997,900	11,709,200
Financial leverage ratio		1.37	1.38	1.38	1.79	1.83

October 28, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $48,794,500K ÷ $35,565,100K
= 1.37

Analog Devices Inc.'s financial leverage ratio has shown a gradual decline over the past five years, decreasing from 1.83 in 2019 to 1.37 in 2023. This suggests that the company has been reducing its reliance on debt to finance its assets and operations. A decreasing trend in the financial leverage ratio indicates improved solvency and lower financial risk, as the company has reduced its debt relative to its equity. This may reflect a more conservative approach to capital structure and financing, potentially resulting in decreased interest expenses and enhanced financial stability. However, it is important to further investigate the specific components of the company's capital structure and debt management strategies to fully understand the implications of this trend.