Analog Devices Inc (ADI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.12 | 0.12 | 0.13 | 0.13 | 0.13 | 0.13 | 0.12 | 0.12 | 0.12 | 0.12 | 0.18 | 0.00 | 0.22 | 0.24 | 0.00 | 0.00 | 0.00 | 0.24 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.15 | 0.15 | 0.14 | 0.14 | 0.14 | 0.24 | 0.00 | 0.28 | 0.30 | 0.00 | 0.00 | 0.00 | 0.31 | 0.00 | 0.00 |
| 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 |
| 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 |
Analog Devices Inc.'s solvency ratios indicate a consistently low level of debt relative to its assets, capital, and equity over the past eight quarters. The Debt-to-assets ratio has remained stable at around 0.13 to 0.14, signaling that the company finances around 86% to 87% of its assets with equity. Similarly, the Debt-to-capital and Debt-to-equity ratios have shown minimal fluctuations, with values hovering between 0.14 to 0.20 and 0.16 to 0.20 respectively.
The Financial leverage ratio, which reflects the company's reliance on debt financing compared to equity, has also demonstrated stability, ranging from 1.36 to 1.38. This suggests that Analog Devices maintains a conservative capital structure, with a higher proportion of equity relative to debt in its capital mix.
Overall, the solvency ratios suggest that Analog Devices Inc. has a healthy financial position with a prudent approach to managing its debt levels. The consistent low to moderate debt ratios indicate a strong ability to meet its financial obligations and support future growth initiatives.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.83 | 14.63 | 17.96 | 19.23 | 19.42 | 16.46 | 10.14 | 9.06 | 7.26 | 8.19 | 11.64 | 10.46 | 9.14 | 7.79 | 7.05 | 6.72 | 6.99 | 7.49 | 7.77 | 7.89 |
Analog Devices Inc.'s interest coverage ratio has displayed a generally positive trend over the past eight quarters, indicating the company's ability to service its interest payments from its operating profits. The interest coverage ratio has consistently been well above 1, suggesting the company generates sufficient earnings to cover its interest expenses comfortably.
The interest coverage ratio has shown an improvement from Q2 2022 to Q1 2024, with the ratio peaking at 23.03 in Q2 2023. This indicates a strong ability to meet interest obligations using operating income during this period.
The company's interest coverage ratio saw a decline in Q2 and Q3 of 2022 but rebounded strongly in the subsequent quarters. Despite the fluctuations, the interest coverage ratio has consistently remained at healthy levels, indicating the company's financial stability and sound operational performance.
Overall, Analog Devices Inc. has demonstrated a strong ability to cover its interest payments from its operating earnings, with the interest coverage ratio showing a positive upward trend over the past eight quarters.