Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Analog Devices Inc., consolidated statement of comprehensive income
US$ in thousands
Based on: 10-K (reporting date: 2025-11-01), 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).
The analysis of the financial data over the six-year period reveals several notable trends and patterns concerning net income, comprehensive income, and components of other comprehensive income.
- Net Income
- Net income demonstrated a fluctuating trajectory with an initial increase from approximately 1.22 billion to 1.39 billion in the first two years. This was followed by a substantial jump to about 2.75 billion and 3.31 billion in the subsequent two years, indicating strong earnings growth during this time. However, there was a marked decline to approximately 1.64 billion in the fifth year before recovering to around 2.27 billion in the final year.
- Foreign Currency Translation Adjustment
- This item showed volatility, starting with positive small amounts in the first two years, turning significantly negative in the third year (approximately -46 million), then fluctuating closer to zero in later periods, indicating instability and foreign currency impact on earnings.
- Changes in Fair Value of Derivatives, Net of Tax
- There was notable variability without a clear directional trend: a large negative value in the first year was followed by a positive rebound and then alternating positive and negative values in subsequent years, reflecting fluctuations in the valuation of derivative financial instruments.
- Adjustment for Realized Gain (Loss) Reclassified into Earnings, Net of Tax
- This adjustment increased notably from a small negative figure to progressively larger positive amounts over the years, suggesting increasing realized gains or better recognition of prior losses.
- Change in Unrecognized Gains (Losses) on Derivative Instruments Designated as Cash Flow Hedges
- From a significant negative figure initially, this component turned positive for five years, with relatively stable positive changes indicating improved hedge effectiveness or less volatility associated with hedging activities.
- Change in Actuarial Gain (Loss), Net of Tax and Change in Accumulated Other Comprehensive Income (Loss), Pension Plans
- These two items are identical and showed a positive increase in the early years, peaking in the third year, followed by negative values in the fourth and fifth years before a strong positive rebound in the last year, reflecting changes in pension-related assumptions or plan performance.
- Other Comprehensive Income (Loss)
- The net other comprehensive income (loss) fluctuated substantially, starting with a significant negative amount, shifting to a large positive number in the second year, turning negative again in the third year, and showing positive amounts in the last three years. This reflects the combined volatility of the components within other comprehensive income.
- Comprehensive Income
- Comprehensive income generally followed the pattern of net income but was slightly higher in magnitude, illustrating the impact of other comprehensive income components on total earnings. It increased overall from approximately 1.16 billion to a peak of about 3.32 billion before declining to 1.64 billion and bouncing back to 2.30 billion in the final year.
In summary, the company experienced strong growth in profitability in the middle years, followed by some volatility and adjustment in the later years. Components of other comprehensive income show marked fluctuations, particularly influenced by foreign currency translation and derivative instruments, which impact the total comprehensive income. Pension plan adjustments contributed variable effects, reflecting underlying changes in actuarial assumptions or pension plan performance over time.