Analog Devices Inc (ADI)

Financial leverage 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
Total assets	US$ in thousands	48,388,500	48,794,500	49,346,700	49,544,700	50,234,500	50,302,400	50,346,200	50,800,700	51,215,600	52,322,100	21,641,200	21,588,200	21,440,100	21,468,600	21,599,600	21,350,900	21,376,800	21,392,600	21,566,600	21,776,300
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
Financial leverage ratio		1.36	1.37	1.37	1.38	1.38	1.38	1.37	1.37	1.37	1.38	1.76	1.77	1.77	1.79	1.83	1.84	1.83	1.83	1.83	1.85

February 3, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $48,388,500K ÷ $35,548,100K
= 1.36

The financial leverage ratio of Analog Devices Inc. has been relatively stable over the past eight quarters, ranging from 1.36 to 1.38. This indicates that the company has been using a moderate level of debt to finance its operations and assets.

A financial leverage ratio of around 1.37 to 1.38 suggests that Analog Devices relies more on equity financing rather than debt, which can be seen as a conservative approach to managing its capital structure. This level of leverage signifies a balanced mix of debt and equity, potentially reducing the risk of financial distress while still taking advantage of the tax benefits associated with debt financing.

Overall, Analog Devices Inc. appears to have maintained a consistent and prudent approach to its financial leverage, which may contribute to the company's stability and financial strength over time.