Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Analog Devices Inc. (NASDAQ:ADI)

Return on Capital (ROC)

Advanced level


Return on Invested Capital (ROIC)

Analog Devices Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016 Oct 31, 2015
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 1,510,496  927,190  74,740  925,163  622,219 
Invested capital2 18,347,668  18,624,001  19,887,009  4,004,443  3,980,835 
Performance Ratio
ROIC3 8.23% 4.98% 0.38% 23.10% 15.63%
Benchmarks
ROIC, Competitors4
Advanced Micro Devices Inc. 11.73% 13.53% 2.05% -14.86% -27.01%
Apple Inc. 98.34% 83.60% 101.81% 114.33% 142.21%
Applied Materials Inc. 28.91% 29.78% 31.69% 20.54% 11.10%
Broadcom Inc. 5.00% 10.03% 3.52% -1.55% 15.58%
Cisco Systems Inc. 18.12% 2.85% 19.68% 23.64% 22.15%
Intel Corp. 26.74% 23.84% 10.03% 16.51% 17.27%
Lam Research Corp. 20.10% 25.72% 31.56% 10.67% 15.45%
Micron Technology Inc. 17.16% 39.70% 18.99% -0.03% 19.13%
NVIDIA Corp. 79.86% 41.40% 40.74% 31.19% 28.18%
Qualcomm Inc. 27.80% -16.06% 1.94% 27.09% 19.77%
Texas Instruments Inc. 43.15% 44.66% 32.30% 28.86% 24.07%

Based on: 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-27), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-22), 10-K (filing date: 2015-11-24).

1 NOPAT. See details »

2 Invested capital. See details »

3 2019 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 1,510,496 ÷ 18,347,668 = 8.23%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Analog Devices Inc.’s ROIC improved from 2017 to 2018 and from 2018 to 2019.

Decomposition of ROIC

Analog Devices Inc., decomposition of ROIC

Microsoft Excel LibreOffice Calc
ROIC = OPM1 × TO2 × 1 – CTR3
Nov 2, 2019 8.23% = 29.60% × 0.33 × 85.18%
Nov 3, 2018 4.98% = 30.11% × 0.33 × 49.67%
Oct 28, 2017 0.38% = 21.16% × 0.26 × 6.92%
Oct 29, 2016 23.10% = 30.31% × 0.85 × 89.22%
Oct 31, 2015 15.63% = 23.13% × 0.86 × 78.30%

Based on: 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-27), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-22), 10-K (filing date: 2015-11-24).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the increase in return on invested capital (ROIC) over 2019 year is the decrease in effective cash tax rate (CTR).


Operating Profit Margin (OPM)

Analog Devices Inc., OPM calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016 Oct 31, 2015
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 1,510,496  927,190  74,740  925,163  622,219 
Add: Cash operating taxes2 262,714  939,609  1,005,861  111,817  172,460 
Net operating profit before taxes (NOPBT) 1,773,209  1,866,799  1,080,602  1,036,980  794,680 
 
Revenue 5,991,065  6,200,942  5,107,503  3,421,409  3,435,092 
Profitability Ratio
OPM3 29.60% 30.11% 21.16% 30.31% 23.13%
Benchmarks
OPM, Competitors4
Advanced Micro Devices Inc. 6.80% 5.88% 2.42% -5.94% -12.88%
Apple Inc. 24.64% 26.58% 26.64% 26.39% 30.76%
Applied Materials Inc. 23.89% 26.89% 29.01% 22.15% 17.40%
Broadcom Inc. 15.65% 24.22% 12.14% -2.93% 24.07%
Cisco Systems Inc. 25.46% 26.21% 27.94% 27.26% 23.84%
Intel Corp. 33.40% 30.95% 26.66% 21.44% 25.84%
Lam Research Corp. 20.46% 29.43% 27.76% 18.88% 18.03%
Micron Technology Inc. 29.90% 47.86% 28.39% 1.37% 21.09%
NVIDIA Corp. 33.09% 32.77% 24.50% 14.96% 15.98%
Qualcomm Inc. 29.51% 1.66% 9.49% 26.07% 20.11%
Texas Instruments Inc. 40.81% 43.25% 41.06% 37.64% 32.94%

Based on: 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-27), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-22), 10-K (filing date: 2015-11-24).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2019 Calculation
OPM = 100 × NOPBT ÷ Revenue
= 100 × 1,773,209 ÷ 5,991,065 = 29.60%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Analog Devices Inc.’s OPM improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Turnover of Capital (TO)

Analog Devices Inc., TO calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016 Oct 31, 2015
Selected Financial Data (US$ in thousands)
Revenue 5,991,065  6,200,942  5,107,503  3,421,409  3,435,092 
Invested capital1 18,347,668  18,624,001  19,887,009  4,004,443  3,980,835 
Efficiency Ratio
TO2 0.33 0.33 0.26 0.85 0.86
Benchmarks
TO, Competitors3
Advanced Micro Devices Inc. 1.97 2.43 2.39 1.90 1.82
Apple Inc. 4.79 8.83 4.47 5.26 6.05
Applied Materials Inc. 1.44 1.52 1.20 1.09 0.83
Broadcom Inc. 0.38 0.47 0.35 0.29 0.81
Cisco Systems Inc. 0.95 1.00 0.87 1.04 1.13
Intel Corp. 0.89 0.94 0.94 0.92 0.91
Lam Research Corp. 1.15 1.15 1.15 0.64 0.95
Micron Technology Inc. 0.60 0.86 0.71 0.56 0.97
NVIDIA Corp. 2.45 1.50 1.71 2.08 1.89
Qualcomm Inc. 1.13 1.20 0.45 1.30 1.21
Texas Instruments Inc. 1.19 1.26 1.26 1.11 1.06

Based on: 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-27), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-22), 10-K (filing date: 2015-11-24).

1 Invested capital. See details »

2 2019 Calculation
TO = Revenue ÷ Invested capital
= 5,991,065 ÷ 18,347,668 = 0.33

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Analog Devices Inc.’s TO improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

Effective Cash Tax Rate (CTR)

Analog Devices Inc., CTR calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016 Oct 31, 2015
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 1,510,496  927,190  74,740  925,163  622,219 
Add: Cash operating taxes2 262,714  939,609  1,005,861  111,817  172,460 
Net operating profit before taxes (NOPBT) 1,773,209  1,866,799  1,080,602  1,036,980  794,680 
Tax Rate
CTR3 14.82% 50.33% 93.08% 10.78% 21.70%
Benchmarks
CTR, Competitors4
Advanced Micro Devices Inc. 12.55% 5.44% 64.46%
Apple Inc. 16.60% 64.38% 14.50% 17.63% 23.61%
Applied Materials Inc. 16.09% 27.18% 8.67% 14.87% 23.00%
Broadcom Inc. 15.10% 11.38% 16.03% 19.97%
Cisco Systems Inc. 24.92% 89.18% 19.15% 16.48% 17.77%
Intel Corp. 10.33% 18.16% 59.84% 16.68% 26.25%
Lam Research Corp. 14.26% 24.00% 1.52% 11.77% 10.13%
Micron Technology Inc. 4.94% 3.36% 6.08% 104.15% 6.26%
NVIDIA Corp. 1.47% 15.99% 2.78% -0.02% 6.81%
Qualcomm Inc. 16.54% 905.86% 54.42% 20.17% 19.01%
Texas Instruments Inc. 11.38% 18.14% 37.69% 31.13% 30.79%

Based on: 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-27), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-22), 10-K (filing date: 2015-11-24).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2019 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 262,714 ÷ 1,773,209 = 14.82%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Analog Devices Inc.’s CTR decreased from 2017 to 2018 and from 2018 to 2019.