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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

Analog Devices Inc., economic profit calculation

US$ in thousands

12 months ended:	Nov 1, 2025	Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Net operating profit after taxes (NOPAT)¹	2,187,350)	1,343,155)	3,141,095)	2,594,637)	1,115,726)	1,265,150)
Cost of capital²	17.18%	17.19%	17.13%	17.14%	16.99%	16.51%
Invested capital³	42,071,671)	43,520,510)	44,182,132)	45,019,927)	47,018,398)	18,211,243)

Economic profit⁴	(5,041,867)	(6,139,484)	(4,425,642)	(5,123,884)	(6,874,888)	(1,741,822)

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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2025 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 2,187,350 – 17.18% × 42,071,671 = -5,041,867

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Analog Devices Inc., NOPAT calculation

US$ in thousands

12 months ended:	Nov 1, 2025	Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Net income	2,267,342)	1,635,273)	3,314,579)	2,748,561)	1,390,422)	1,220,761)
Deferred income tax expense (benefit)¹	(246,645)	(367,563)	(452,946)	(326,755)	(406,922)	(113,948)
Increase (decrease) in allowances²	(1,719)	4,397)	(1,808)	1,913)	(1,692)	(4,037)
Increase (decrease) in accrued special charges³	(10,457)	(132,855)	92,728)	7,860)	(19,111)	5,021)
Increase (decrease) in equity equivalents⁴	(258,821)	(496,021)	(362,026)	(316,982)	(427,725)	(112,964)
Interest expense	317,716)	322,227)	264,641)	200,408)	184,825)	193,305)
Interest expense, operating lease liability⁵	13,916)	14,695)	15,307)	12,900)	10,102)	10,181)
Adjusted interest expense	331,632)	336,922)	279,948)	213,308)	194,927)	203,486)
Tax benefit of interest expense⁶	(69,643)	(70,754)	(58,789)	(44,795)	(40,935)	(42,732)
Adjusted interest expense, after taxes⁷	261,989)	266,168)	221,159)	168,513)	153,993)	160,754)
Interest income	(105,266)	(78,817)	(41,287)	(6,906)	(1,220)	(4,305)
Investment income, before taxes	(105,266)	(78,817)	(41,287)	(6,906)	(1,220)	(4,305)
Tax expense (benefit) of investment income⁸	22,106)	16,552)	8,670)	1,450)	256)	904)
Investment income, after taxes⁹	(83,160)	(62,265)	(32,617)	(5,456)	(964)	(3,401)
Net operating profit after taxes (NOPAT)	2,187,350)	1,343,155)	3,141,095)	2,594,637)	1,115,726)	1,265,150)

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).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowances.

³ Addition of increase (decrease) in accrued special charges.

⁴ Addition of increase (decrease) in equity equivalents to net income.

⁵ 2025 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 356,809 × 3.90% = 13,916

⁶ 2025 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 331,632 × 21.00% = 69,643

⁷ Addition of after taxes interest expense to net income.

⁸ 2025 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 105,266 × 21.00% = 22,106

⁹ Elimination of after taxes investment income.

Net Income Trend: The net income exhibits a generally positive trend with some fluctuations over the analyzed periods. From October 31, 2020, to October 30, 2021, net income increased moderately from approximately $1.22 billion to $1.39 billion. A significant surge is observed in the following year ending October 29, 2022, where net income almost doubles to about $2.75 billion. This upward trajectory continues into October 28, 2023, peaking near $3.31 billion. However, there is a notable decline in the subsequent year on November 2, 2024, with net income dropping to approximately $1.64 billion. The final period, November 1, 2025, sees a recovery with net income rising again to around $2.27 billion, though it remains below the peak of 2023.
NOPAT Trend: Net Operating Profit After Taxes (NOPAT) shows a trend broadly aligned with net income, suggesting operational performance closely mirrors overall profitability. Initially, NOPAT decreases from about $1.27 billion in 2020 to approximately $1.12 billion in 2021. This is followed by a marked increase in 2022 to roughly $2.59 billion and continues to rise to around $3.14 billion by 2023. Similar to net income, NOPAT experiences a decline in November 2024, falling to about $1.34 billion, before recovering to approximately $2.19 billion in November 2025.
Comparative Insights: The parallel movements in net income and NOPAT imply that variations in profitability are largely driven by operating performance rather than shifts in non-operating activities or tax impacts. Both metrics demonstrate substantial growth between 2021 and 2023, reflecting a period of strong operational efficiency or favorable market conditions. The decrease seen in 2024 may indicate operational challenges, increased costs, or external factors adversely affecting profitability, followed by partial recovery in 2025.
Overall Observations: Over the six-year span, the company experienced significant growth in profitability metrics with a peak in 2023. The subsequent dip in 2024 suggests some volatility or transitional challenges that warrant further investigation. The recovery in 2025 indicates resilience and improvement but does not reach prior peak levels by the end of the observed period. Continued monitoring of operational efficiency and market conditions would be advisable to sustain or improve profitability.

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Analog Devices Inc., cash operating taxes calculation

US$ in thousands

12 months ended:	Nov 1, 2025	Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Provision for (benefit from) income tax	444,770)	142,067)	293,424)	350,188)	(61,708)	90,856)
Less: Deferred income tax expense (benefit)	(246,645)	(367,563)	(452,946)	(326,755)	(406,922)	(113,948)
Add: Tax savings from interest expense	69,643)	70,754)	58,789)	44,795)	40,935)	42,732)
Less: Tax imposed on investment income	22,106)	16,552)	8,670)	1,450)	256)	904)
Cash operating taxes	738,952)	563,832)	796,489)	720,287)	385,893)	246,632)

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).

Provision for (benefit from) income tax: The provision for income tax exhibits significant volatility across the observed periods. In the fiscal year ending October 31, 2020, the provision was a positive amount of approximately $90.9 million, suggesting a recorded tax expense. However, in the subsequent year, there was a notable reversal to a tax benefit of approximately $61.7 million. Following this, the provision returned to a substantial tax expense, peaking at about $350.2 million in 2022 and sustaining relatively high values through 2023 and beyond, with figures of approximately $293.4 million, $142.1 million, and $444.8 million for the years ending October 28, 2023, November 2, 2024, and November 1, 2025, respectively. This fluctuation might indicate changes in taxable income, tax planning strategies, or adjustments in deferred tax assets and liabilities.
Cash operating taxes: Cash paid for operating taxes has shown a consistent upward trend over the reported years, indicating increasing cash outflows related to tax payments. Starting at approximately $246.6 million for the fiscal year ending October 31, 2020, it rose to $385.9 million in 2021 and then nearly doubled to about $720.3 million in 2022. The upward trajectory continued, reaching $796.5 million in 2023. There is a slight dip in the following year to $563.8 million in 2024, but the amount increases again to around $739.0 million in 2025. This pattern suggests that while some years experienced a temporary reduction, the overall cash tax burden has increased substantially, potentially reflecting higher taxable earnings or changes in tax legislation or company operations affecting cash tax payments.

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Analog Devices Inc., invested capital calculation (financing approach)

US$ in thousands

	Nov 1, 2025	Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Debt, current	—)	399,636)	499,052)	—)	516,663)	—)
Commercial paper notes	446,639)	547,738)	547,224)	—)	—)	—)
Long-term debt, excluding current	8,145,066)	6,634,313)	5,902,457)	6,548,625)	6,253,212)	5,145,102)
Operating lease liability¹	356,809)	386,700)	425,205)	390,907)	348,358)	328,415)
Total reported debt & leases	8,948,514)	7,968,387)	7,373,938)	6,939,532)	7,118,233)	5,473,517)
Shareholders’ equity	33,815,755)	35,176,317)	35,565,122)	36,465,323)	37,992,542)	11,997,945)
Net deferred tax (assets) liabilities²	296,179)	540,640)	904,580)	1,357,650)	1,671,561)	416,531)
Allowances³	5,441)	7,160)	2,763)	4,571)	2,658)	4,350)
Accrued special charges⁴	4,115)	14,572)	147,427)	54,699)	46,839)	69,439)
Equity equivalents⁵	305,735)	562,372)	1,054,770)	1,416,920)	1,721,058)	490,320)
Accumulated other comprehensive (income) loss, net of tax⁶	154,582)	185,256)	188,302)	198,152)	186,565)	249,461)
Adjusted shareholders’ equity	34,276,072)	35,923,945)	36,808,194)	38,080,395)	39,900,165)	12,737,726)
Short-term investments⁷	(1,152,915)	(371,822)	—)	—)	—)	—)
Invested capital	42,071,671)	43,520,510)	44,182,132)	45,019,927)	47,018,398)	18,211,243)

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).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of accrued special charges.

⁵ Addition of equity equivalents to shareholders’ equity.

⁶ Removal of accumulated other comprehensive income.

⁷ Subtraction of short-term investments.

The analysis of the financial data reveals distinct trends in the company's capital structure over the six-year period under review. The total reported debt and leases demonstrate a consistent upward trajectory, increasing from approximately $5.47 billion in late 2020 to nearly $8.95 billion by late 2025. This growth indicates an increasing reliance on debt financing or lease commitments over time, reflecting either an expansion in operations, capital expenditures, or refinancing activities.

Conversely, shareholders’ equity experienced a notable surge between 2020 and 2021, rising sharply from roughly $12.0 billion to nearly $38.0 billion. However, following this spike, equity levels have gradually declined each subsequent year, decreasing to about $33.8 billion by 2025. This downward trend could suggest factors such as dividend distributions exceeding net income, share repurchases, or accumulated losses, which have eroded equity after its initial increase.

Invested capital, representing the total funds invested in the company’s operations, similarly rose steeply from $18.2 billion in 2020 to $47.0 billion in 2021. Following this peak, invested capital steadily declined year-over-year, falling to approximately $42.1 billion in 2025. The decrease in invested capital alongside the declining equity suggests a strategic reduction or reallocation of invested resources, possibly through asset divestitures or operational efficiencies.

Total Reported Debt & Leases: Displays a steady increase, implying greater leverage or lease commitments over the analyzed period.
Shareholders’ Equity: Exhibits a significant increase followed by a gradual but persistent decline, indicating shifts in retained earnings, dividends, or capital management strategies.
Invested Capital: Rises sharply early on, then decreases gradually, reflecting changes in asset base investment and capital deployment.

Overall, the data suggest a financial strategy characterized by increased debt utilization, initial capital accumulation or revaluation, and subsequent capital base contraction. This pattern should be further examined in the context of profitability, cash flow, and market conditions to assess sustainability and risk implications.

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Analog Devices Inc., cost of capital calculations

Nov 1, 2025

	Capital (fair value)¹	Weights					Cost of capital
Equity²	123,402,626)	123,402,626)	÷	131,742,653)	=	0.94	0.94	×	18.15%	=	17.00%
Debt³	7,983,218)	7,983,218)	÷	131,742,653)	=	0.06	0.06	×	3.61% × (1 – 21.00%)	=	0.17%
Operating lease liability⁴	356,809)	356,809)	÷	131,742,653)	=	0.00	0.00	×	3.90% × (1 – 21.00%)	=	0.01%
Total:	131,742,653)					1.00					17.18%

Based on: 10-K (reporting date: 2025-11-01).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Nov 2, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	108,713,826)	108,713,826)	÷	115,898,467)	=	0.94	0.94	×	18.15%	=	17.03%
Debt³	6,797,941)	6,797,941)	÷	115,898,467)	=	0.06	0.06	×	3.40% × (1 – 21.00%)	=	0.16%
Operating lease liability⁴	386,700)	386,700)	÷	115,898,467)	=	0.00	0.00	×	3.80% × (1 – 21.00%)	=	0.01%
Total:	115,898,467)					1.00					17.19%

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

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Oct 28, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	89,947,429)	89,947,429)	÷	96,216,918)	=	0.93	0.93	×	18.15%	=	16.97%
Debt³	5,844,284)	5,844,284)	÷	96,216,918)	=	0.06	0.06	×	3.03% × (1 – 21.00%)	=	0.15%
Operating lease liability⁴	425,205)	425,205)	÷	96,216,918)	=	0.00	0.00	×	3.60% × (1 – 21.00%)	=	0.01%
Total:	96,216,918)					1.00					17.13%

Based on: 10-K (reporting date: 2023-10-28).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Oct 29, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	85,780,715)	85,780,715)	÷	91,644,227)	=	0.94	0.94	×	18.15%	=	16.99%
Debt³	5,472,605)	5,472,605)	÷	91,644,227)	=	0.06	0.06	×	3.05% × (1 – 21.00%)	=	0.14%
Operating lease liability⁴	390,907)	390,907)	÷	91,644,227)	=	0.00	0.00	×	3.30% × (1 – 21.00%)	=	0.01%
Total:	91,644,227)					1.00					17.14%

Based on: 10-K (reporting date: 2022-10-29).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Oct 30, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	94,974,532)	94,974,532)	÷	102,470,497)	=	0.93	0.93	×	18.15%	=	16.82%
Debt³	7,147,607)	7,147,607)	÷	102,470,497)	=	0.07	0.07	×	2.97% × (1 – 21.00%)	=	0.16%
Operating lease liability⁴	348,358)	348,358)	÷	102,470,497)	=	0.00	0.00	×	2.90% × (1 – 21.00%)	=	0.01%
Total:	102,470,497)					1.00					16.99%

Based on: 10-K (reporting date: 2021-10-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Oct 31, 2020

	Capital (fair value)¹	Weights					Cost of capital
Equity²	50,578,788)	50,578,788)	÷	56,616,198)	=	0.89	0.89	×	18.15%	=	16.22%
Debt³	5,708,995)	5,708,995)	÷	56,616,198)	=	0.10	0.10	×	3.54% × (1 – 21.00%)	=	0.28%
Operating lease liability⁴	328,415)	328,415)	÷	56,616,198)	=	0.01	0.01	×	3.10% × (1 – 21.00%)	=	0.01%
Total:	56,616,198)					1.00					16.51%

Based on: 10-K (reporting date: 2020-10-31).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Analog Devices Inc., economic spread ratio calculation, comparison to benchmarks

	Nov 1, 2025	Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Selected Financial Data (US$ in thousands)
Economic profit¹	(5,041,867)	(6,139,484)	(4,425,642)	(5,123,884)	(6,874,888)	(1,741,822)
Invested capital²	42,071,671)	43,520,510)	44,182,132)	45,019,927)	47,018,398)	18,211,243)
Performance Ratio
Economic spread ratio³	-11.98%	-14.11%	-10.02%	-11.38%	-14.62%	-9.56%
Benchmarks
Economic Spread Ratio, Competitors⁴
Advanced Micro Devices Inc.	-21.64%	-27.91%	-29.34%	-28.95%	27.62%	—
Applied Materials Inc.	16.99%	10.10%	13.08%	23.06%	18.54%	6.90%
Broadcom Inc.	-2.94%	-10.36%	4.87%	3.61%	-5.62%	-10.85%
Intel Corp.	-18.75%	-30.07%	-19.96%	-13.18%	3.41%	—
KLA Corp.	21.66%	17.29%	21.21%	23.57%	12.08%	1.12%
Lam Research Corp.	14.32%	-0.83%	4.52%	19.49%	14.84%	-0.86%
Micron Technology Inc.	-5.86%	-17.77%	-29.72%	-2.08%	-6.69%	-12.13%
NVIDIA Corp.	117.01%	61.57%	-16.52%	25.68%	6.16%	—
Qualcomm Inc.	12.43%	7.63%	0.17%	26.60%	24.00%	9.07%
Texas Instruments Inc.	2.47%	2.78%	12.40%	32.98%	31.62%	—

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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2025 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -5,041,867 ÷ 42,071,671 = -11.98%

⁴ Click competitor name to see calculations.

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Analog Devices Inc., economic profit margin calculation, comparison to benchmarks

	Nov 1, 2025	Nov 2, 2024	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020
Selected Financial Data (US$ in thousands)
Economic profit¹	(5,041,867)	(6,139,484)	(4,425,642)	(5,123,884)	(6,874,888)	(1,741,822)
Revenue	11,019,707)	9,427,157)	12,305,539)	12,013,953)	7,318,286)	5,603,056)
Performance Ratio
Economic profit margin²	-45.75%	-65.13%	-35.96%	-42.65%	-93.94%	-31.09%
Benchmarks
Economic Profit Margin, Competitors³
Advanced Micro Devices Inc.	-38.57%	-63.03%	-74.88%	-71.79%	10.41%	—
Applied Materials Inc.	12.05%	7.03%	8.77%	13.31%	11.83%	5.25%
Broadcom Inc.	-6.92%	-28.33%	8.51%	6.76%	-13.25%	-29.95%
Intel Corp.	-41.38%	-52.27%	-33.90%	-18.53%	3.82%	—
KLA Corp.	16.57%	14.84%	16.85%	19.93%	11.91%	1.26%
Lam Research Corp.	11.97%	-0.84%	3.97%	14.39%	11.97%	-1.00%
Micron Technology Inc.	-9.59%	-37.73%	-102.24%	-3.56%	-11.19%	-23.92%
NVIDIA Corp.	42.38%	31.08%	-13.07%	17.21%	4.81%	—
Qualcomm Inc.	8.78%	6.05%	0.15%	17.72%	14.45%	6.84%
Texas Instruments Inc.	3.99%	4.65%	15.99%	28.92%	28.28%	—

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).

¹ Economic profit. See details »

² 2025 Calculation
Economic profit margin = 100 × Economic profit ÷ Revenue
= 100 × -5,041,867 ÷ 11,019,707 = -45.75%

³ Click competitor name to see calculations.

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Analog Devices Inc. (NASDAQ:ADI)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin