Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Analog Devices Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
Federal tax	303,146)	304,556)	134,652)	64,876)	74,049)	826,294)
State	11,772)	13,214)	7,772)	4,882)	2)	5,917)
Foreign	431,452)	359,173)	202,790)	135,046)	139,919)	47,633)
Current	746,370)	676,943)	345,214)	204,804)	213,970)	879,844)
Federal	(508,741)	(341,777)	515,541)	(159,229)	(158,472)	(744,260)
State	2,063)	(612)	(12,444)	(12,684)	(3,627)	806)
Foreign	53,732)	15,634)	(910,019)	57,965)	70,846)	6,695)
Deferred	(452,946)	(326,755)	(406,922)	(113,948)	(91,253)	(736,759)
Provision for (benefit from) income tax	293,424)	350,188)	(61,708)	90,856)	122,717)	143,085)

Based on: 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02), 10-K (reporting date: 2018-11-03).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Analog Devices Inc. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Analog Devices Inc. deferred increased from 2021 to 2022 but then decreased significantly from 2022 to 2023.
Provision for (benefit from) income tax	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Analog Devices Inc. provision for (benefit from) income tax increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Analog Devices Inc., effective income tax rate (EITR) reconciliation

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
U.S. federal statutory tax rate	21.00%	21.00%	21.00%	21.00%	21.00%	23.40%
Effective tax rate, excluding taxes attributable to the Tax Cuts and Jobs Act of 2017	8.13%	11.30%	-4.64%	6.93%	8.76%	4.46%
Effective tax rate	8.13%	11.30%	-4.64%	6.93%	8.26%	8.73%

Based on: 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02), 10-K (reporting date: 2018-11-03).

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Item	Description	The company
Effective tax rate, excluding taxes attributable to the Tax Cuts and Jobs Act of 2017	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Analog Devices Inc. effective tax rate, excluding taxes attributable to the Tax Cuts and Jobs Act of 2017 increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Analog Devices Inc., components of deferred tax assets and liabilities

US$ in thousands

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
Inventory reserves	20,159)	16,584)	—)	17,074)	21,081)	22,184)
Deferred income on shipments to distributors	—)	—)	—)	—)	—)	46,168)
Reserves for compensation and benefits	57,603)	60,871)	64,274)	54,428)	53,090)	39,185)
Tax credit carryovers	313,891)	327,671)	295,345)	163,507)	133,485)	112,851)
Stock-based compensation	10,734)	25,059)	26,541)	12,758)	63,589)	53,105)
Net operating losses	42,825)	43,696)	62,876)	8,546)	5,299)	5,997)
Intangible assets	1,955,752)	1,975,096)	2,002,041)	1,479,944)	1,567,536)	—)
Lease liability	82,305)	76,709)	60,954)	55,250)	—)	—)
Capitalization of R&D expenses	421,485)	155,099)	—)	—)	—)	—)
Other	88,164)	93,697)	248,075)	159,838)	70,974)	35,738)
Gross deferred tax assets	2,992,918)	2,774,482)	2,760,106)	1,951,345)	1,915,054)	315,228)
Valuation allowance	(332,464)	(339,105)	(315,434)	(154,130)	(116,349)	(82,280)
Deferred tax assets	2,660,454)	2,435,377)	2,444,672)	1,797,215)	1,798,705)	232,948)
Inventory reserves	—)	—)	(18,570)	—)	—)	—)
Depreciation	(122,125)	(96,660)	(91,846)	(7,409)	(38,464)	(37,023)
Deferred GILTI tax liabilities	(2,654,817)	(2,824,332)	(3,059,919)	(1,183,955)	(1,254,029)	—)
Right of use asset	(60,343)	(55,858)	(53,686)	(51,055)	—)	—)
Acquisition-related intangibles	(727,749)	(816,177)	(892,212)	(971,327)	(1,012,042)	(1,099,998)
Other	—)	—)	—)	—)	—)	(1,914)
Gross deferred tax liabilities	(3,565,034)	(3,793,027)	(4,116,233)	(2,213,746)	(2,304,535)	(1,138,935)
Net deferred tax assets (liabilities)	(904,580)	(1,357,650)	(1,671,561)	(416,531)	(505,830)	(905,987)

Based on: 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02), 10-K (reporting date: 2018-11-03).

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Item	Description	The company
Gross deferred tax assets	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Analog Devices Inc. gross deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax assets	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Analog Devices Inc. deferred tax assets decreased from 2021 to 2022 but then increased from 2022 to 2023 exceeding 2021 level.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Analog Devices Inc. net deferred tax assets (liabilities) increased from 2021 to 2022 and from 2022 to 2023.

Analog Devices Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
	Deferred tax assets	2,223,272)	2,264,888)	2,267,269)	1,503,064)	1,582,382)	21,078)
	Deferred tax liabilities	3,127,852)	3,622,538)	3,938,830)	1,919,595)	2,088,212)	927,065)

Based on: 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02), 10-K (reporting date: 2018-11-03).

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Item	Description	The company
Deferred tax assets	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Analog Devices Inc. deferred tax assets decreased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities	Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent.	Analog Devices Inc. deferred tax liabilities decreased from 2021 to 2022 and from 2022 to 2023.

Analog Devices Inc., adjustments to financial statements

US$ in thousands

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
Adjustment to Total Assets
Total assets (as reported)	48,794,478)	50,302,350)	52,322,071)	21,468,603)	21,392,641)	20,449,779)
Less: Noncurrent deferred tax assets, net	2,223,272)	2,264,888)	2,267,269)	1,503,064)	1,582,382)	21,078)
Total assets (adjusted)	46,571,206)	48,037,462)	50,054,802)	19,965,539)	19,810,259)	20,428,701)
Adjustment to Total Liabilities
Total liabilities (as reported)	13,229,356)	13,837,027)	14,329,529)	9,470,658)	9,683,453)	9,461,239)
Less: Noncurrent deferred tax liabilities, net	3,127,852)	3,622,538)	3,938,830)	1,919,595)	2,088,212)	927,065)
Total liabilities (adjusted)	10,101,504)	10,214,489)	10,390,699)	7,551,063)	7,595,241)	8,534,174)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	35,565,122)	36,465,323)	37,992,542)	11,997,945)	11,709,188)	10,988,540)
Less: Net deferred tax assets (liabilities)	(904,580)	(1,357,650)	(1,671,561)	(416,531)	(505,830)	(905,987)
Shareholders’ equity (adjusted)	36,469,702)	37,822,973)	39,664,103)	12,414,476)	12,215,018)	11,894,527)
Adjustment to Net Income
Net income (as reported)	3,314,579)	2,748,561)	1,390,422)	1,220,761)	1,363,011)	1,495,432)
Add: Deferred income tax expense (benefit)	(452,946)	(326,755)	(406,922)	(113,948)	(91,253)	(736,759)
Net income (adjusted)	2,861,633)	2,421,806)	983,500)	1,106,813)	1,271,758)	758,673)

Based on: 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02), 10-K (reporting date: 2018-11-03).

Analog Devices Inc., Financial Data: Reported vs. Adjusted

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Analog Devices Inc., adjusted financial ratios

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
Net Profit Margin
Reported net profit margin	26.94%	22.88%	19.00%	21.79%	22.75%	24.12%
Adjusted net profit margin	23.25%	20.16%	13.44%	19.75%	21.23%	12.23%
Total Asset Turnover
Reported total asset turnover	0.25	0.24	0.14	0.26	0.28	0.30
Adjusted total asset turnover	0.26	0.25	0.15	0.28	0.30	0.30
Financial Leverage
Reported financial leverage	1.37	1.38	1.38	1.79	1.83	1.86
Adjusted financial leverage	1.28	1.27	1.26	1.61	1.62	1.72
Return on Equity (ROE)
Reported ROE	9.32%	7.54%	3.66%	10.17%	11.64%	13.61%
Adjusted ROE	7.85%	6.40%	2.48%	8.92%	10.41%	6.38%
Return on Assets (ROA)
Reported ROA	6.79%	5.46%	2.66%	5.69%	6.37%	7.31%
Adjusted ROA	6.14%	5.04%	1.96%	5.54%	6.42%	3.71%

Based on: 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02), 10-K (reporting date: 2018-11-03).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Analog Devices Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Analog Devices Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Analog Devices Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Analog Devices Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Analog Devices Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Analog Devices Inc., Financial Ratios: Reported vs. Adjusted

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	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	3,314,579)	2,748,561)	1,390,422)	1,220,761)	1,363,011)	1,495,432)
Revenue	12,305,539)	12,013,953)	7,318,286)	5,603,056)	5,991,065)	6,200,942)
Profitability Ratio
Net profit margin¹	26.94%	22.88%	19.00%	21.79%	22.75%	24.12%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	2,861,633)	2,421,806)	983,500)	1,106,813)	1,271,758)	758,673)
Revenue	12,305,539)	12,013,953)	7,318,286)	5,603,056)	5,991,065)	6,200,942)
Profitability Ratio
Adjusted net profit margin²	23.25%	20.16%	13.44%	19.75%	21.23%	12.23%

Based on: 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02), 10-K (reporting date: 2018-11-03).

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 3,314,579 ÷ 12,305,539 = 26.94%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 2,861,633 ÷ 12,305,539 = 23.25%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Analog Devices Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Revenue	12,305,539)	12,013,953)	7,318,286)	5,603,056)	5,991,065)	6,200,942)
Total assets	48,794,478)	50,302,350)	52,322,071)	21,468,603)	21,392,641)	20,449,779)
Activity Ratio
Total asset turnover¹	0.25	0.24	0.14	0.26	0.28	0.30
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue	12,305,539)	12,013,953)	7,318,286)	5,603,056)	5,991,065)	6,200,942)
Adjusted total assets	46,571,206)	48,037,462)	50,054,802)	19,965,539)	19,810,259)	20,428,701)
Activity Ratio
Adjusted total asset turnover²	0.26	0.25	0.15	0.28	0.30	0.30

Based on: 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02), 10-K (reporting date: 2018-11-03).

2023 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 12,305,539 ÷ 48,794,478 = 0.25

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 12,305,539 ÷ 46,571,206 = 0.26

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Analog Devices Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	48,794,478)	50,302,350)	52,322,071)	21,468,603)	21,392,641)	20,449,779)
Shareholders’ equity	35,565,122)	36,465,323)	37,992,542)	11,997,945)	11,709,188)	10,988,540)
Solvency Ratio
Financial leverage¹	1.37	1.38	1.38	1.79	1.83	1.86
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	46,571,206)	48,037,462)	50,054,802)	19,965,539)	19,810,259)	20,428,701)
Adjusted shareholders’ equity	36,469,702)	37,822,973)	39,664,103)	12,414,476)	12,215,018)	11,894,527)
Solvency Ratio
Adjusted financial leverage²	1.28	1.27	1.26	1.61	1.62	1.72

Based on: 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02), 10-K (reporting date: 2018-11-03).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 48,794,478 ÷ 35,565,122 = 1.37

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 46,571,206 ÷ 36,469,702 = 1.28

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Analog Devices Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	3,314,579)	2,748,561)	1,390,422)	1,220,761)	1,363,011)	1,495,432)
Shareholders’ equity	35,565,122)	36,465,323)	37,992,542)	11,997,945)	11,709,188)	10,988,540)
Profitability Ratio
ROE¹	9.32%	7.54%	3.66%	10.17%	11.64%	13.61%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	2,861,633)	2,421,806)	983,500)	1,106,813)	1,271,758)	758,673)
Adjusted shareholders’ equity	36,469,702)	37,822,973)	39,664,103)	12,414,476)	12,215,018)	11,894,527)
Profitability Ratio
Adjusted ROE²	7.85%	6.40%	2.48%	8.92%	10.41%	6.38%

Based on: 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02), 10-K (reporting date: 2018-11-03).

2023 Calculations

¹ ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 3,314,579 ÷ 35,565,122 = 9.32%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted shareholders’ equity
= 100 × 2,861,633 ÷ 36,469,702 = 7.85%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Analog Devices Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income	3,314,579)	2,748,561)	1,390,422)	1,220,761)	1,363,011)	1,495,432)
Total assets	48,794,478)	50,302,350)	52,322,071)	21,468,603)	21,392,641)	20,449,779)
Profitability Ratio
ROA¹	6.79%	5.46%	2.66%	5.69%	6.37%	7.31%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	2,861,633)	2,421,806)	983,500)	1,106,813)	1,271,758)	758,673)
Adjusted total assets	46,571,206)	48,037,462)	50,054,802)	19,965,539)	19,810,259)	20,428,701)
Profitability Ratio
Adjusted ROA²	6.14%	5.04%	1.96%	5.54%	6.42%	3.71%

Based on: 10-K (reporting date: 2023-10-28), 10-K (reporting date: 2022-10-29), 10-K (reporting date: 2021-10-30), 10-K (reporting date: 2020-10-31), 10-K (reporting date: 2019-11-02), 10-K (reporting date: 2018-11-03).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 3,314,579 ÷ 48,794,478 = 6.79%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 2,861,633 ÷ 46,571,206 = 6.14%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Analog Devices Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Analog Devices Inc. (NASDAQ:ADI)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

Analog Devices Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Analog Devices Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)