Analog Devices Inc (ADI)
Financial leverage ratio
| Nov 2, 2024 | Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 48,228,300 | 48,794,500 | 50,302,400 | 52,322,100 | 21,468,600 |
| Total stockholders’ equity | US$ in thousands | 35,176,300 | 35,565,100 | 36,465,300 | 37,992,500 | 11,997,900 |
| Financial leverage ratio | 1.37 | 1.37 | 1.38 | 1.38 | 1.79 |
November 2, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $48,228,300K ÷ $35,176,300K
= 1.37
The financial leverage ratio of Analog Devices Inc has been relatively stable over the past five years, ranging from 1.37 to 1.79. The ratio indicates the proportion of the company's assets that are financed by debt as opposed to equity.
The consistent values around 1.37 to 1.38 for the financial leverage ratio suggest that Analog Devices Inc has maintained a relatively balanced capital structure, with a moderate level of debt compared to equity. However, the increase in the ratio to 1.79 in fiscal year 2020 indicates a significant rise in leverage, which may have been a result of increased borrowing or decreased equity.
It is important to further analyze the company's debt levels and overall financial health in conjunction with other financial metrics to assess the impact and sustainability of the changes in the financial leverage ratio over time.
Peer comparison
Nov 2, 2024