Return on Equity (ROE)
since 2005
Calculation
Analog Devices Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Shareholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Nov 2, 2024 | 4.65% | = | 100 | × | 1,635,273) | ÷ | 35,176,317) |
| Oct 28, 2023 | 9.32% | = | 100 | × | 3,314,579) | ÷ | 35,565,122) |
| Oct 29, 2022 | 7.54% | = | 100 | × | 2,748,561) | ÷ | 36,465,323) |
| Oct 30, 2021 | 3.66% | = | 100 | × | 1,390,422) | ÷ | 37,992,542) |
| Oct 31, 2020 | 10.17% | = | 100 | × | 1,220,761) | ÷ | 11,997,945) |
| Nov 2, 2019 | 11.64% | = | 100 | × | 1,363,011) | ÷ | 11,709,188) |
| Nov 3, 2018 | 13.61% | = | 100 | × | 1,495,432) | ÷ | 10,988,540) |
| Oct 28, 2017 | 7.16% | = | 100 | × | 727,259) | ÷ | 10,161,540) |
| Oct 29, 2016 | 16.68% | = | 100 | × | 861,664) | ÷ | 5,165,618) |
| Oct 31, 2015 | 13.74% | = | 100 | × | 696,878) | ÷ | 5,072,959) |
| Nov 1, 2014 | 13.23% | = | 100 | × | 629,320) | ÷ | 4,757,897) |
| Nov 2, 2013 | 14.21% | = | 100 | × | 673,487) | ÷ | 4,739,576) |
| Nov 3, 2012 | 15.63% | = | 100 | × | 651,236) | ÷ | 4,165,359) |
| Oct 29, 2011 | 22.85% | = | 100 | × | 867,394) | ÷ | 3,795,413) |
| Oct 30, 2010 | 22.25% | = | 100 | × | 712,084) | ÷ | 3,199,717) |
| Oct 31, 2009 | 9.80% | = | 100 | × | 247,772) | ÷ | 2,529,149) |
| Nov 1, 2008 | 32.49% | = | 100 | × | 786,284) | ÷ | 2,420,263) |
| Nov 3, 2007 | 21.25% | = | 100 | × | 496,907) | ÷ | 2,338,141) |
| Oct 28, 2006 | 15.99% | = | 100 | × | 549,482) | ÷ | 3,435,793) |
| Oct 29, 2005 | 11.24% | = | 100 | × | 414,787) | ÷ | 3,691,501) |
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), 10-K (reporting date: 2018-11-03), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-11-01), 10-K (reporting date: 2013-11-02), 10-K (reporting date: 2012-11-03), 10-K (reporting date: 2011-10-29), 10-K (reporting date: 2010-10-30), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-11-01), 10-K (reporting date: 2007-11-03), 10-K (reporting date: 2006-10-28), 10-K (reporting date: 2005-10-29).
1 US$ in thousands
The company’s net income exhibits notable fluctuations over the observed period. Initially, there is a general upward trend from around 415 million US dollars in 2005 to a peak exceeding 1.49 billion US dollars in 2018. However, this peak is followed by volatility, with net income decreasing to approximately 1.36 billion in 2019 and dropping further to about 1.22 billion in 2020. Subsequently, a strong increase occurs, reaching the highest level in the series at approximately 2.75 billion US dollars in 2022, followed by an even higher peak of around 3.31 billion US dollars in 2023. The latest data point for 2024 shows a marked decline to approximately 1.64 billion US dollars.
Shareholders’ equity generally trends upwards throughout the period. Starting at approximately 3.69 billion US dollars in 2005, it experiences a dip in the following years, reaching a low near 2.34 billion US dollars in 2007 before resuming steady growth. From 2010 onwards, equity increases consistently, with significant growth after 2016, when it more than doubles to over 10 billion US dollars by 2017. This upward trend continues, peaking at around 38 billion US dollars in 2021. After 2021, equity slightly decreases, stabilizing around 35 billion US dollars through 2024.
The Return on Equity (ROE) ratio demonstrates considerable variability, reflecting the interplay between net income and shareholders’ equity. ROE starts at 11.24% in 2005, reaching a peak of 32.49% in 2008, which coincides with a relatively lower equity base combined with rising net income. After this peak, ROE declines significantly, stabilizing mostly between 10% and 20% levels for several years. Notably, there is a pronounced drop to 7.16% in 2017, followed by a recovery to 13.61% in 2018, then a downward trend, with ROE reaching its lowest values of 3.66% in 2021. Although there is a modest increase to 9.32% in 2023, the latest year again sees a reduction to 4.65%.
Overall, the data indicates the company has experienced substantial growth in shareholders’ equity and fluctuating net income levels over the years. Despite periods of increasing profitability as reflected in net income, the ROE tends to moderate, particularly in recent years, likely due to the rapid expansion of equity capital. This suggests that while the company’s asset base grows significantly, net income generation has not kept pace proportionally, leading to a compression of returns on equity in the most recent periods.
Comparison to Competitors
Analog Devices Inc., ROE, long-term trends, comparison to competitors
| Analog Devices Inc. | Advanced Micro Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Micron Technology Inc. | Monolithic Power Systems Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Nov 2, 2024 | 4.65% | 2.85% | 37.77% | 8.71% | -18.89% | 82.00% | 44.82% | 1.72% | 56.80% | 69.24% | 38.60% | 28.39% |
| Oct 28, 2023 | 9.32% | 1.53% | 41.94% | 58.70% | 1.60% | 116.01% | 54.94% | -13.22% | 20.85% | 19.76% | 33.51% | 38.53% |
| Oct 29, 2022 | 7.54% | 2.41% | 53.51% | 50.62% | 7.90% | 237.04% | 73.35% | 17.41% | 26.23% | 36.65% | 71.81% | 60.02% |
| Oct 30, 2021 | 3.66% | 42.18% | 48.08% | 26.99% | 20.83% | 61.53% | 64.85% | 13.34% | 19.46% | 25.64% | 90.88% | 58.27% |
| Oct 31, 2020 | 10.17% | 42.66% | 34.21% | 12.40% | 25.79% | 45.65% | 43.53% | 6.89% | 17.01% | 22.91% | 85.54% | 60.90% |
| Nov 2, 2019 | 11.64% | 12.06% | 32.94% | 10.92% | 27.16% | 44.21% | 46.89% | 17.59% | 14.07% | 44.33% | 89.35% | 56.33% |
| Nov 3, 2018 | 13.61% | 26.62% | 48.44% | 45.99% | 28.24% | 49.51% | 36.62% | 43.77% | 16.45% | 40.78% | -524.14% | 62.04% |
| Oct 28, 2017 | 7.16% | 7.04% | 36.73% | 8.34% | 13.91% | 69.82% | 24.90% | 27.33% | 12.49% | 28.91% | 8.02% | 35.62% |
| Oct 29, 2016 | 16.68% | -119.47% | 23.85% | -9.20% | 15.58% | 102.22% | 15.51% | -2.28% | 12.23% | 13.74% | 17.95% | 34.33% |
| Oct 31, 2015 | 13.74% | — | 18.09% | 28.94% | 18.70% | 86.88% | 12.85% | 23.57% | 9.54% | 14.27% | 16.78% | 30.02% |
| Nov 1, 2014 | 13.23% | -215.51% | 13.62% | 8.11% | 20.95% | 15.88% | 12.57% | 28.27% | 10.25% | 9.87% | 20.34% | 27.15% |
| Nov 2, 2013 | 14.21% | -15.26% | 3.61% | 19.13% | 16.51% | 15.60% | 2.54% | 13.02% | 7.08% | 11.65% | 18.99% | 20.01% |
| Nov 3, 2012 | 15.63% | -219.89% | 1.51% | 23.27% | 21.49% | 22.80% | 3.29% | -13.40% | 6.10% | 14.02% | 18.22% | 16.05% |
| Oct 29, 2011 | 22.85% | 30.88% | 21.89% | 27.52% | 28.19% | 27.77% | 29.30% | 1.97% | 5.48% | 7.96% | 15.81% | 20.42% |
| Oct 30, 2010 | 22.25% | 46.50% | 12.44% | 27.57% | 23.19% | 9.45% | 19.61% | 23.07% | 11.97% | -2.55% | 15.57% | 30.93% |
| Oct 31, 2009 | 9.80% | 46.91% | -4.30% | -4.23% | 10.48% | -23.96% | -20.79% | -39.43% | 9.24% | -1.25% | 7.84% | 15.12% |
| Nov 1, 2008 | 32.49% | — | 12.73% | — | 13.54% | 12.04% | 24.70% | -26.21% | 14.71% | 30.47% | 17.61% | 20.59% |
| Nov 3, 2007 | 21.25% | -113.01% | 21.87% | — | 16.31% | 14.88% | 58.30% | -4.13% | 8.42% | 22.36% | 20.86% | 26.64% |
| Oct 28, 2006 | 15.99% | -2.87% | 22.80% | — | 13.72% | 10.66% | 24.05% | 5.03% | -3.02% | 20.76% | 18.42% | 38.21% |
| Oct 29, 2005 | 11.24% | 4.94% | 13.55% | — | 23.95% | 15.33% | 28.06% | 3.22% | 6.53% | 8.52% | 19.27% | 19.47% |
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), 10-K (reporting date: 2018-11-03), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-11-01), 10-K (reporting date: 2013-11-02), 10-K (reporting date: 2012-11-03), 10-K (reporting date: 2011-10-29), 10-K (reporting date: 2010-10-30), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-11-01), 10-K (reporting date: 2007-11-03), 10-K (reporting date: 2006-10-28), 10-K (reporting date: 2005-10-29).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
Analog Devices Inc., ROE, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Analog Devices Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Nov 2, 2024 | 4.65% | 12.10% |
| Oct 28, 2023 | 9.32% | 13.34% |
| Oct 29, 2022 | 7.54% | 22.71% |
| Oct 30, 2021 | 3.66% | 25.76% |
| Oct 31, 2020 | 10.17% | 24.50% |
| Nov 2, 2019 | 11.64% | 26.78% |
| Nov 3, 2018 | 13.61% | 33.36% |
| Oct 28, 2017 | 7.16% | 16.94% |
| Oct 29, 2016 | 16.68% | 13.42% |
| Oct 31, 2015 | 13.74% | 19.04% |
| Nov 1, 2014 | 13.23% | 19.75% |
| Nov 2, 2013 | 14.21% | 15.75% |
| Nov 3, 2012 | 15.63% | 14.93% |
| Oct 29, 2011 | 22.85% | 21.52% |
| Oct 30, 2010 | 22.25% | 20.97% |
| Oct 31, 2009 | 9.80% | 5.28% |
| Nov 1, 2008 | 32.49% | 10.03% |
| Nov 3, 2007 | 21.25% | 13.62% |
| Oct 28, 2006 | 15.99% | 16.50% |
| Oct 29, 2005 | 11.24% | 18.49% |
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), 10-K (reporting date: 2018-11-03), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-11-01), 10-K (reporting date: 2013-11-02), 10-K (reporting date: 2012-11-03), 10-K (reporting date: 2011-10-29), 10-K (reporting date: 2010-10-30), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-11-01), 10-K (reporting date: 2007-11-03), 10-K (reporting date: 2006-10-28), 10-K (reporting date: 2005-10-29).
Comparison to Industry (Information Technology)
Analog Devices Inc., ROE, long-term trends, comparison to industry (information technology)
| Analog Devices Inc. | Information Technology | |
|---|---|---|
| Nov 2, 2024 | 4.65% | 29.38% |
| Oct 28, 2023 | 9.32% | 31.90% |
| Oct 29, 2022 | 7.54% | 39.03% |
| Oct 30, 2021 | 3.66% | 42.37% |
| Oct 31, 2020 | 10.17% | 35.70% |
| Nov 2, 2019 | 11.64% | 36.62% |
| Nov 3, 2018 | 13.61% | 30.36% |
| Oct 28, 2017 | 7.16% | 23.39% |
| Oct 29, 2016 | 16.68% | 23.35% |
| Oct 31, 2015 | 13.74% | 26.16% |
| Nov 1, 2014 | 13.23% | 25.60% |
| Nov 2, 2013 | 14.21% | 24.88% |
| Nov 3, 2012 | 15.63% | 26.23% |
| Oct 29, 2011 | 22.85% | 29.20% |
| Oct 30, 2010 | 22.25% | 27.88% |
| Oct 31, 2009 | 9.80% | 20.28% |
| Nov 1, 2008 | 32.49% | 25.66% |
| Nov 3, 2007 | 21.25% | 24.00% |
| Oct 28, 2006 | 15.99% | 22.73% |
| Oct 29, 2005 | 11.24% | 22.11% |
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), 10-K (reporting date: 2018-11-03), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29), 10-K (reporting date: 2015-10-31), 10-K (reporting date: 2014-11-01), 10-K (reporting date: 2013-11-02), 10-K (reporting date: 2012-11-03), 10-K (reporting date: 2011-10-29), 10-K (reporting date: 2010-10-30), 10-K (reporting date: 2009-10-31), 10-K (reporting date: 2008-11-01), 10-K (reporting date: 2007-11-03), 10-K (reporting date: 2006-10-28), 10-K (reporting date: 2005-10-29).