Stock Analysis on Net
Stock Analysis on Net

Analog Devices Inc. (NASDAQ:ADI)

$24.99

Analysis of Liquidity Ratios

Microsoft Excel

Liquidity ratios measure the company ability to meet its short-term obligations.

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Liquidity Ratios (Summary)

Analog Devices Inc., liquidity ratios

Microsoft Excel
Nov 1, 2025 Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020
Current ratio
Quick ratio
Cash ratio

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).

Current Ratio
The current ratio exhibited a generally positive trend over the analyzed period, with initial growth from 1.84 to 2.02 spanning through 2020 to 2022. A noticeable decline occurred in 2023, dropping to 1.37, before rebounding significantly to 2.19 by 2025. This indicates fluctuations in short-term liquidity but an overall strengthening position by the end of the period.
Quick Ratio
The quick ratio showed some volatility, starting at 1.31 in 2020, dipping slightly to 1.24 in 2021, then rising modestly to 1.34 in 2022. A steep decrease was observed in 2023 down to 0.76, reflecting a tighter liquidity position without relying on inventory. This was followed by recovery to 1.57 in 2025, suggesting improved liquid asset coverage towards the later years.
Cash Ratio
The cash ratio demonstrated a downward trajectory from 0.77 in 2020 to a low point of 0.3 in 2023, indicating diminishing cash and cash equivalents relative to current liabilities at that time. However, after hitting this low, the ratio strengthened markedly to 1.13 by 2025, showing enhanced availability of cash reserves relative to short-term obligations.

Current Ratio

Analog Devices Inc., current ratio calculation, comparison to benchmarks

Microsoft Excel
Nov 1, 2025 Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020
Selected Financial Data (US$ in thousands)
Current assets
Current liabilities
Liquidity Ratio
Current ratio1
Benchmarks
Current Ratio, Competitors2
Advanced Micro Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Current Ratio, Sector
Semiconductors & Semiconductor Equipment
Current Ratio, Industry
Information Technology

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 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.

Current Assets
The current assets have shown a general upward trajectory over the analyzed periods. Starting from approximately $2.52 billion in 2020, there was a significant increase to around $5.38 billion by 2021. Although a slight decrease was observed in 2022 and 2023, the values rebounded in 2024 and further increased to about $7.11 billion by 2025, indicating an overall strengthening of liquid and short-term assets.
Current Liabilities
Current liabilities have experienced considerable fluctuations. They rose sharply from roughly $1.36 billion in 2020 to about $2.77 billion in 2021. This figure declined in 2022 but increased again notably in 2023. For 2024 and 2025, liabilities stabilized with moderate increases, reaching around $3.25 billion in 2025. This pattern indicates variability in short-term obligations, peaking in certain years relative to others.
Current Ratio
The current ratio, representing liquidity, varied over the period analyzed. It started at 1.84 in 2020, edging higher to 1.94 in 2021 and 2.02 in 2022, suggesting improving short-term financial health initially. However, it declined to 1.37 in 2023, indicating tighter liquidity conditions that year. It rebounded to 1.84 in 2024 and increased further to 2.19 in 2025, signaling an overall restoration and enhancement of the company's ability to cover current liabilities with current assets.
Summary
The financial data indicate that current assets have broadly increased over the six-year span, despite some intermediate declines. Current liabilities have been more volatile but trended upward in recent years. The current ratio's evolution reflects these asset and liability changes, showing robust liquidity in early years, a notable dip in 2023, and recovery with improved liquidity by 2025. Overall, the trends suggest an improving capacity to meet short-term obligations by the end of the period analyzed.

Quick Ratio

Analog Devices Inc., quick ratio calculation, comparison to benchmarks

Microsoft Excel
Nov 1, 2025 Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020
Selected Financial Data (US$ in thousands)
Cash and cash equivalents
Short-term investments
Accounts receivable less allowances
Total quick assets
 
Current liabilities
Liquidity Ratio
Quick ratio1
Benchmarks
Quick Ratio, Competitors2
Advanced Micro Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Quick Ratio, Sector
Semiconductors & Semiconductor Equipment
Quick Ratio, Industry
Information Technology

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 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.

Total Quick Assets
The total quick assets exhibited a generally positive trend over the examined period. Beginning at approximately 1.79 billion US dollars, there was a significant increase to over 3.43 billion in the following year. Although a slight decrease occurred in the third year, the figure remained above 3.27 billion. A more pronounced decline was observed in the fourth year, reaching around 2.43 billion. However, this was followed by two consecutive years of substantial growth, culminating in over 5.08 billion by the end of the period, marking the highest value recorded.
Current Liabilities
Current liabilities followed an upward trend with some fluctuations. Starting at approximately 1.36 billion US dollars, the liabilities more than doubled in the next year to approximately 2.77 billion. The subsequent year saw a decline to 2.44 billion, followed by an increase to 3.20 billion in the fourth year. The fifth year showed a slight decrease to about 2.99 billion before rising again to 3.25 billion in the final year. Overall, current liabilities increased notably over the period, with variability in intermediate years.
Quick Ratio
The quick ratio demonstrated variability indicating fluctuating liquidity levels. Initially, the ratio slightly decreased from 1.31 to 1.24, before rising marginally to 1.34 in the third year, suggesting an improvement in short-term liquidity. A sharp decline to 0.76 in the fourth year indicated potential liquidity pressures during that period. The ratio then recovered to 1.24 and further improved to 1.57 in the final year, suggesting strengthening liquidity and an enhanced ability to cover current liabilities with quick assets.
Summary of Trends
Overall, quick assets increased substantially, particularly in the final two years, which likely contributed to improved liquidity ratios. While current liabilities also rose over the timeframe, the significant growth in quick assets towards the end resulted in a strengthened quick ratio. The sharp dip in liquidity in the fourth year signals a period of potential financial strain, while the subsequent recovery indicates improved short-term financial stability. These patterns suggest a company managing its liquidity carefully, experiencing some volatility but ending the period in a stronger position regarding its ability to meet short-term obligations.

Cash Ratio

Analog Devices Inc., cash ratio calculation, comparison to benchmarks

Microsoft Excel
Nov 1, 2025 Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020
Selected Financial Data (US$ in thousands)
Cash and cash equivalents
Short-term investments
Total cash assets
 
Current liabilities
Liquidity Ratio
Cash ratio1
Benchmarks
Cash Ratio, Competitors2
Advanced Micro Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Cash Ratio, Sector
Semiconductors & Semiconductor Equipment
Cash Ratio, Industry
Information Technology

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 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =

2 Click competitor name to see calculations.

Total cash assets
The total cash assets demonstrate a fluctuating trend over the observed periods. Starting at approximately 1,056,860 thousand USD, cash assets increased significantly to nearly 1,977,964 thousand USD in the following year. However, this was followed by a decline to 1,470,572 thousand USD, and a further decrease to 958,061 thousand USD. After this trough, cash assets rose markedly to 2,363,164 thousand USD and continued to rise substantially to 3,652,321 thousand USD in the final period. This indicates a recovery and strengthening of liquid resources after intermediate declines.
Current liabilities
Current liabilities show an overall upward trend with some variability. The liabilities rose sharply from around 1,364,986 thousand USD to 2,770,312 thousand USD early in the period. A modest decrease to 2,442,655 thousand USD was observed next, followed by an increase to 3,200,971 thousand USD. The liabilities then decreased slightly to 2,988,280 thousand USD before increasing again to reach the highest level of 3,245,801 thousand USD in the last period. These figures suggest increasing short-term obligations with fluctuations reflective of operational or financing activities.
Cash ratio
The cash ratio follows a pattern aligned with the changes in total cash assets and current liabilities, reflecting liquidity changes. Initially, the ratio stood at 0.77, then experienced a small decline to 0.71 and further decreased to 0.60. A significant drop to 0.30 indicates a potential liquidity squeeze during that period. The ratio then recovered sharply to 0.79 and improved further to 1.13, indicating enhanced liquidity and the ability to cover current liabilities with cash and cash equivalents beyond the current liabilities threshold in the final year.
Overall analysis
The company’s liquidity position showed considerable volatility but ended the period with a substantially stronger cash position and improved liquidity ratios. The significant increase in cash assets coupled with a high cash ratio in the final years suggests enhanced financial flexibility. Meanwhile, current liabilities have grown, indicating increased short-term obligations requiring management attention. The fluctuations in liquidity ratios highlight the importance of ongoing monitoring to ensure that cash resources are sufficient to meet near-term liabilities.