Stock Analysis on Net
Stock Analysis on Net

Analog Devices Inc. (NASDAQ:ADI)

Common-Size Income Statement 

Analog Devices Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
Revenue 100.00 100.00 100.00 100.00 100.00 100.00
Cost of sales -42.92 -35.99 -37.30 -38.17 -34.13 -33.00
Gross margin 57.08% 64.01% 62.70% 61.83% 65.87% 67.00%
Research and development -15.78 -13.49 -14.15 -17.71 -18.75 -18.87
Selling, marketing, general and administrative -11.34 -10.35 -10.54 -12.51 -11.78 -10.82
Amortization of intangibles -8.01 -7.80 -8.43 -7.34 -7.66 -7.16
Special charges, net -0.40 -1.31 -2.28 -1.15 -0.93 -1.60
Operating expenses -35.52% -32.95% -35.41% -38.71% -39.13% -38.44%
Operating income 21.56% 31.07% 27.29% 23.12% 26.74% 28.55%
Interest expense -3.42 -2.15 -1.67 -2.53 -3.45 -3.82
Loss on extinguishment of debt 0.00 0.00 0.00 -2.94 0.00 0.00
Interest income 0.84 0.34 0.06 0.02 0.08 0.17
Other, net -0.13 0.07 0.11 0.48 0.04 -0.10
Nonoperating income (expenses) -2.71% -1.75% -1.50% -4.97% -3.33% -3.75%
Income before income taxes 18.85% 29.32% 25.79% 18.16% 23.41% 24.80%
(Provision for) benefit from income taxes -1.51 -2.38 -2.91 0.84 -1.62 -2.05
Net income 17.35% 26.94% 22.88% 19.00% 21.79% 22.75%

Based on: 10-K (reporting date: 2024-11-02), 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).

Revenue and Cost of Sales
Revenue remained constant at 100% across all periods, serving as the base for other financial percentages. The cost of sales as a percentage of revenue showed fluctuations, increasing from -33% in 2019 to a peak of -42.92% in 2024. This rise indicates a growing share of costs relative to revenue, particularly noticeable in the last recorded year.
Gross Margin
Gross margin steadily declined over the period, dropping from 67% of revenue in 2019 to 57.08% in 2024. This decline reflects increased cost pressure on gross profits, aligned with the rising cost of sales.
Research and Development (R&D)
Investment in research and development as a percentage of revenue decreased from -18.87% in 2019 to a low of -13.49% in 2023 but rose again to -15.78% in 2024. The trend suggests a reduction in R&D intensity until 2023, followed by a moderate increase in the final year.
Selling, Marketing, General and Administrative Expenses (SG&A)
SG&A expenses showed minor variation, fluctuating between approximately -10.35% and -12.51% of revenue. The lowest percentage was recorded in 2023, indicating some operational efficiency improvements during that year, but expenses increased again to -11.34% in 2024.
Amortization of Intangibles
The amortization of intangibles remained relatively stable, ranging between -7.16% and -8.43% of revenue. The highest percentage was observed in 2022. Overall, this cost component maintained a consistent share of revenue.
Special Charges, Net
Special charges showed variable patterns, with a low of -0.4% in 2024 and a high of -2.28% in 2022. The values suggest sporadic one-time costs impacting operating results, generally remaining low in magnitude.
Operating Expenses
Total operating expenses as a percentage of revenue declined from -38.44% in 2019 to -32.95% in 2023, then rose again to -35.52% in 2024. This indicates an overall improvement in operating cost control until 2023, followed by a slight increase in 2024.
Operating Income
Operating income exhibited a downward trend from 28.55% in 2019 to a low of 21.56% in 2024, with a peak of 31.07% in 2023. The fluctuations suggest variability in profitability, with operating income improving notably in 2022 and 2023 before declining again.
Interest Expense and Income
Interest expense decreased from -3.82% in 2019 to a low of -1.67% in 2022 but increased again to -3.42% in 2024, indicating changing debt service costs. Interest income was minimal throughout but increased in the final two years, reaching 0.84% in 2024, slightly mitigating net interest costs.
Loss on Extinguishment of Debt
Loss on extinguishment of debt was only recorded in 2021, at -2.94%, impacting that year's nonoperating results.
Other Nonoperating Items and Overall Nonoperating Income/Expenses
Other nonoperating income and expenses fluctuated close to zero, with both positive and negative values. Nonoperating income (expenses) improved overall from -3.75% in 2019 to a low of -1.5% in 2022 but worsened to -2.71% in 2024.
Income Before Income Taxes
Income before income taxes trended downward from 24.8% in 2019 to 18.85% in 2024, despite a recovery to 29.32% in 2023. This indicates variability in pre-tax profitability, affected by the changes in operating and nonoperating items.
Provision for Income Taxes
The provision for income taxes as a percentage of revenue fluctuated, showing a positive benefit from income taxes (i.e. tax income) of 0.84% in 2021, contrasted with tax expenses in other years ranging between -1.51% and -2.91%. This indicates variation in tax rates or benefits over the periods.
Net Income
Net income followed a declining pattern, reducing from 22.75% in 2019 to 17.35% in 2024. The highest net income percentage was recorded in 2023 at 26.94%, consistent with peaks in operating and pre-tax income, before a subsequent decline.