Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

Analog Devices Inc., consolidated income statement

US$ in thousands

12 months ended:	Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019
Revenue	9,427,157)	12,305,539)	12,013,953)	7,318,286)	5,603,056)	5,991,065)
Cost of sales	(4,045,814)	(4,428,321)	(4,481,479)	(2,793,274)	(1,912,578)	(1,977,315)
Gross margin	5,381,343)	7,877,218)	7,532,474)	4,525,012)	3,690,478)	4,013,750)
Research and development	(1,487,863)	(1,660,194)	(1,700,518)	(1,296,126)	(1,050,519)	(1,130,348)
Selling, marketing, general and administrative	(1,068,640)	(1,273,584)	(1,266,175)	(915,418)	(659,923)	(648,094)
Amortization of intangibles	(754,784)	(959,618)	(1,012,572)	(536,811)	(429,455)	(429,041)
Special charges, net	(37,258)	(160,710)	(274,509)	(84,456)	(52,337)	(95,659)
Operating expenses	(3,348,545)	(4,054,106)	(4,253,774)	(2,832,811)	(2,192,234)	(2,303,142)
Operating income	2,032,798)	3,823,112)	3,278,700)	1,692,201)	1,498,244)	1,710,608)
Interest expense	(322,227)	(264,641)	(200,408)	(184,825)	(193,305)	(229,075)
Loss on extinguishment of debt	—)	—)	—)	(215,150)	—)	—)
Interest income	78,817)	41,287)	6,906)	1,220)	4,305)	10,229)
Other, net	(12,048)	8,245)	13,551)	35,268)	2,373)	(6,034)
Nonoperating income (expenses)	(255,458)	(215,109)	(179,951)	(363,487)	(186,627)	(224,880)
Income before income taxes	1,777,340)	3,608,003)	3,098,749)	1,328,714)	1,311,617)	1,485,728)
(Provision for) benefit from income taxes	(142,067)	(293,424)	(350,188)	61,708)	(90,856)	(122,717)
Net income	1,635,273)	3,314,579)	2,748,561)	1,390,422)	1,220,761)	1,363,011)

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).

The financial data exhibits several notable trends over the years under review. Revenue showed volatility, initially declining from 5.99 billion to 5.60 billion US dollars, followed by a significant increase peaking at over 12 billion in 2022 and 2023 before declining sharply to approximately 9.43 billion in 2024. This pattern indicates a period of strong growth succeeded by a notable contraction.

Cost of sales mirrored revenue trends but with some variations. Costs rose substantially in 2022 and 2023, congruent with revenue peaks, then decreased in 2024. Despite these fluctuations, the gross margin generally trended upward through 2023, reaching a peak of over 7.8 billion US dollars, before dropping to around 5.4 billion in the final year, maintaining overall profitability despite the revenue decline.

Research and development expenses consistently increased up until 2022, reflecting growing investment in innovation or product development, before declining slightly in the last two years. Selling, marketing, general and administrative expenses followed a similar trajectory, with a clear rise until 2022–2023 and a subsequent reduction, suggesting efforts to control operating costs amid changing revenue conditions.

Amortization of intangibles showed a rising trend through 2022, nearly doubling from the 2019 figure, then decreased significantly by 2024. Special charges spiked notably in 2022, which could indicate one-time or extraordinary expenses during that year, but decreased thereafter. Operating expenses overall grew sharply until 2022, then declined in recent years, aligning with the patterns in selling and R&D expenses.

Operating income experienced strong growth, more than doubling from 2019 to 2023, reflecting operational efficiency and scale benefits during revenue expansion. However, operating income saw a marked decline in 2024, consistent with the reduction in revenue and operating expenses. Interest expense increased over the period, especially notable in the latter years, which could impact net profitability.

There was a recorded loss on extinguishment of debt in 2021, impacting nonoperating expenses for that year. Interest income remained relatively low but rose significantly in 2023 and 2024, partially offsetting increased interest expenses. Other nonoperating income was inconsistent, with positive and negative variations.

Nonoperating income (expenses) shifted, showing the largest net expense in 2021, influenced by the debt extinguishment loss, and then relatively stable negative figures thereafter. Income before income taxes reflected the overall trend of increasing profitability until 2023, with a sharp decrease in 2024 paralleling reduced operating income.

The provision for income taxes fluctuated, showing negative values (tax benefits) in some years, particularly in 2021, which somewhat offsets taxation costs. Net income followed the trend of increasing profitability up to 2023 but declined substantially in 2024, mirroring the fall in revenue and operating income.

Summary of Financial Trends:: - Revenue growth until 2023 followed by a decline in 2024.; - Gross margin increased strongly but contracted in the latest year.; - Operating expenses rose until 2022, then declined.; - Operating income peaked in 2023, then decreased sharply.; - Interest expenses increased over time; interest income rose in recent years.; - Nonoperating expenses peaked in 2021 due to debt extinguishment loss.; - Income before taxes and net income peaked in 2023, then declined in 2024.

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Analog Devices Inc. (NASDAQ:ADI)

Income Statement