Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Analog Devices Inc., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-05-03), 10-Q (reporting date: 2025-02-01), 10-K (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-Q (reporting date: 2024-02-03), 10-K (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-K (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-K (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-30), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-Q (reporting date: 2020-02-01), 10-K (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-Q (reporting date: 2019-02-02).
The liquidity ratios demonstrate notable fluctuations over the examined period, reflecting changes in the company's short-term financial health and asset liquidity.
- Current Ratio
- The current ratio started at 2.34 in early 2019, indicating a relatively strong ability to cover short-term liabilities with current assets. It then declined steadily until reaching a low point near 1.05 in May 2021, suggesting a weakening liquidity position. After this trough, the ratio recovered and exhibited an upward trend, reaching levels above 2.0 by early 2023, with some fluctuations continuing through to mid-2025. Overall, this pattern suggests cyclical variations in working capital management or seasonal factors affecting assets and liabilities.
- Quick Ratio
- The quick ratio followed a broadly similar trajectory as the current ratio but with generally lower values, reflecting the exclusion of inventory from liquid assets. It began at 1.55 in early 2019, declined gradually to a low of 0.70 by early 2020, and remained relatively volatile through mid-2021, hitting another low around 0.76. Subsequently, the quick ratio improved noticeably, peaking at approximately 1.54 in early 2022. After this peak, the ratio again declined, hitting lows below 0.80 in late 2023 and early 2024, before showing recovery signs towards mid-2025 with values rising back above 1.3. These movements suggest changes in the composition of current assets, particularly liquid assets excluding inventory, influencing the company's immediate liquidity.
- Cash Ratio
- The cash ratio, representing the most conservative liquidity measure, started at 0.71 in early 2019 and declined to a trough near 0.30 by late 2023, indicating a reduction in cash and cash equivalents relative to current liabilities. Following this low, the ratio reversed course and increased steadily, reaching levels close to 0.9 by mid-2025. This pattern likely reflects fluctuations in cash holdings and short-term investments, with a notable decrease in cash liquidity during parts of 2022 and 2023 and a subsequent rebuild of cash reserves.
In summary, liquidity indicators reveal a period of declining short-term financial strength from early 2019 through mid-2021, followed by recovery phases and some volatility. The current ratio consistently remains above 1.0, indicating general adequacy in covering short-term liabilities. However, the quick and cash ratios show periods when the company's more liquid assets were relatively low, possibly indicating tighter liquidity conditions at certain intervals. The observed trends highlight the importance of monitoring components of current assets and liabilities to maintain sufficient liquidity and operational flexibility over time.
Current Ratio
Analog Devices Inc., current ratio calculation (quarterly data)
| May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||||||
| Current assets | 5,588,537) | 5,733,076) | 5,484,654) | 5,442,936) | 5,193,621) | 4,415,877) | 4,384,022) | 4,835,185) | 4,744,920) | 5,161,500) | 4,937,992) | 4,689,708) | 4,634,189) | 4,636,695) | 5,378,317) | 3,090,455) | 2,902,800) | 2,624,741) | 2,517,688) | 2,485,237) | 2,051,293) | 1,911,179) | 1,985,126) | 2,007,058) | 2,080,489) | 1,985,180) | ||||||||
| Current liabilities | 2,690,642) | 2,970,996) | 2,988,280) | 3,226,629) | 3,297,322) | 2,923,366) | 3,200,971) | 2,831,018) | 2,646,410) | 2,433,677) | 2,442,655) | 2,441,201) | 2,326,212) | 2,221,906) | 2,770,312) | 2,793,342) | 2,776,829) | 1,676,757) | 1,364,986) | 1,687,776) | 1,582,002) | 1,770,542) | 1,508,632) | 1,483,680) | 1,365,035) | 849,955) | ||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||||||
| Current ratio1 | 2.08 | 1.93 | 1.84 | 1.69 | 1.58 | 1.51 | 1.37 | 1.71 | 1.79 | 2.12 | 2.02 | 1.92 | 1.99 | 2.09 | 1.94 | 1.11 | 1.05 | 1.57 | 1.84 | 1.47 | 1.30 | 1.08 | 1.32 | 1.35 | 1.52 | 2.34 | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Current Ratio, Competitors2 | ||||||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 2.80 | 2.62 | 2.50 | 2.82 | 2.64 | 2.51 | 2.19 | 2.18 | 2.38 | 2.36 | 2.16 | 2.44 | 2.40 | 2.02 | 2.24 | 2.70 | 2.51 | 2.54 | 2.28 | 2.10 | 2.21 | — | — | — | — | ||||||||
| Applied Materials Inc. | 2.46 | 2.68 | 2.51 | 2.86 | 2.80 | 2.71 | 2.60 | 2.30 | 2.26 | 2.31 | 2.16 | 2.26 | 2.29 | 2.51 | 2.54 | 2.98 | 3.10 | 3.17 | 3.00 | 2.86 | 2.67 | 2.36 | 2.30 | 2.65 | 2.79 | 2.72 | ||||||||
| Broadcom Inc. | 1.08 | 1.00 | 1.17 | 1.04 | 1.25 | 1.33 | 2.82 | 2.50 | 2.38 | 2.52 | 2.62 | 2.32 | 2.14 | 2.44 | 2.64 | 2.41 | 2.21 | 2.14 | 1.87 | 2.04 | 2.15 | 1.56 | 1.44 | 1.32 | 1.26 | 1.27 | ||||||||
| Intel Corp. | — | 1.31 | 1.33 | 1.31 | 1.59 | 1.57 | 1.54 | 1.53 | 1.60 | 1.76 | 1.57 | 1.77 | 1.86 | 2.13 | 2.10 | 2.07 | 1.99 | 1.90 | 1.91 | 1.66 | 1.97 | 1.74 | — | — | — | — | ||||||||
| KLA Corp. | 2.36 | 2.13 | 2.15 | 2.14 | 1.91 | 2.21 | 2.24 | 2.35 | 2.34 | 2.43 | 2.50 | 2.33 | 2.41 | 2.44 | 2.71 | 2.66 | 2.59 | 2.72 | 2.78 | 2.61 | 2.55 | 2.24 | 2.44 | 2.61 | 3.03 | 3.45 | ||||||||
| Lam Research Corp. | 2.54 | 2.53 | 2.97 | 2.82 | 3.06 | 3.06 | 3.16 | 3.09 | 3.01 | 2.69 | 2.69 | 2.83 | 3.13 | 3.27 | 3.30 | 3.13 | 3.19 | 3.31 | 3.43 | 4.47 | 3.30 | 3.59 | 3.61 | 3.37 | 3.39 | 2.66 | ||||||||
| Micron Technology Inc. | 3.13 | 2.72 | 2.64 | 3.41 | 3.74 | 3.53 | 4.46 | 4.26 | 4.17 | 3.51 | 2.89 | 3.24 | 3.11 | 3.10 | 3.10 | 3.40 | 3.18 | 2.91 | 2.71 | 2.89 | 2.74 | 2.56 | 2.58 | 2.79 | 2.25 | 2.90 | ||||||||
| NVIDIA Corp. | 4.27 | 3.53 | 4.17 | 3.59 | 2.79 | 3.43 | 3.52 | 3.39 | 3.62 | 5.32 | 6.65 | 7.14 | 5.80 | 4.53 | 4.09 | 3.92 | 6.09 | 10.29 | 7.67 | 8.42 | 8.65 | 8.98 | — | — | — | — | ||||||||
| Qualcomm Inc. | 2.73 | 2.62 | 2.40 | 2.39 | 2.65 | 2.56 | 2.33 | 2.42 | 2.42 | 2.09 | 1.75 | 1.61 | 1.61 | 1.65 | 1.68 | 1.72 | 2.02 | 2.15 | 2.14 | 1.97 | 1.57 | 1.76 | 1.88 | 1.77 | 1.55 | 1.54 | ||||||||
| Texas Instruments Inc. | — | 5.26 | 4.12 | 4.31 | 4.62 | 4.91 | 4.55 | 5.69 | 5.72 | 5.17 | 4.70 | 4.92 | 5.09 | 5.54 | 5.33 | 5.63 | 5.08 | 6.12 | 4.28 | 4.24 | 3.92 | 3.49 | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2025-05-03), 10-Q (reporting date: 2025-02-01), 10-K (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-Q (reporting date: 2024-02-03), 10-K (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-K (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-K (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-30), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-Q (reporting date: 2020-02-01), 10-K (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-Q (reporting date: 2019-02-02).
1 Q2 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= 5,588,537 ÷ 2,690,642 = 2.08
2 Click competitor name to see calculations.
The data reveals fluctuations in liquidity and working capital components over the observed quarterly periods. Current assets have generally increased over time, moving from approximately 1.99 billion US dollars in early 2019 to a peak exceeding 5.37 billion US dollars in late 2021, before showing some variability around 5.5 billion US dollars in the latest periods. This upward trend reflects an accumulation of liquid and short-term assets, albeit with some volatility in the medium term.
Current liabilities also experienced growth but displayed a more irregular pattern. Starting at about 850 million US dollars in early 2019, current liabilities surged beyond 2.7 billion US dollars by late 2021 and reached levels close to or slightly below 3.3 billion US dollars in some subsequent quarters. The variability and notable increases in liabilities imply growing short-term obligations, which could be linked to operational scaling or financing activities.
The current ratio, a key measure of short-term liquidity, reflects these movements and signals varying degrees of short-term financial stability. It began at a high of 2.34, indicating strong liquidity, but then declined sharply to as low as 1.05 in early to mid-2021. A ratio near or just above 1 suggests a tighter liquidity position, implying that liquid assets were only marginally sufficient to cover current liabilities during that period. Subsequently, the current ratio improved again, reaching above 2 on multiple occasions in 2021 and cycling between approximately 1.37 and 2.12 in the latest quarters. This pattern suggests the company has experienced periods of constrained liquidity but managed to restore a healthier buffer over current liabilities at times.
Overall, the data points to a company undergoing phases of expansion in both assets and liabilities, with associated fluctuations in liquidity ratios. The improvement of the current ratio after mid-2021 indicates efforts or circumstances that bolstered short-term financial strength. However, the recurrent dips below 1.5 at several points could suggest intervals of tighter working capital management or external pressures affecting the ability to cover short-term obligations with readily available assets.
Quick Ratio
Analog Devices Inc., quick ratio calculation (quarterly data)
| May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 2,376,235) | 2,349,994) | 1,991,342) | 2,106,032) | 1,939,695) | 1,303,560) | 958,061) | 1,149,246) | 1,177,609) | 1,670,462) | 1,470,572) | 1,524,960) | 1,737,733) | 1,790,399) | 1,977,964) | 1,480,701) | 1,305,216) | 1,048,063) | 1,055,860) | 1,090,264) | 784,937) | 654,408) | 648,322) | 612,164) | 713,601) | 605,864) | ||||||||
| Short-term investments | —) | 371,460) | 371,822) | 439,667) | 424,117) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||||
| Accounts receivable | 1,382,365) | 1,192,442) | 1,336,331) | 1,127,158) | 1,004,628) | 1,196,721) | 1,469,734) | 1,616,243) | 1,616,256) | 1,629,870) | 1,800,462) | 1,742,646) | 1,608,254) | 1,636,928) | 1,459,056) | 823,163) | 814,135) | 826,964) | 737,536) | 681,728) | 588,244) | 584,366) | 635,136) | 689,976) | 685,978) | 713,730) | ||||||||
| Total quick assets | 3,758,600) | 3,913,896) | 3,699,495) | 3,672,857) | 3,368,440) | 2,500,281) | 2,427,795) | 2,765,489) | 2,793,865) | 3,300,332) | 3,271,034) | 3,267,606) | 3,345,987) | 3,427,327) | 3,437,020) | 2,303,864) | 2,119,351) | 1,875,027) | 1,793,396) | 1,771,992) | 1,373,181) | 1,238,774) | 1,283,458) | 1,302,140) | 1,399,579) | 1,319,594) | ||||||||
| Current liabilities | 2,690,642) | 2,970,996) | 2,988,280) | 3,226,629) | 3,297,322) | 2,923,366) | 3,200,971) | 2,831,018) | 2,646,410) | 2,433,677) | 2,442,655) | 2,441,201) | 2,326,212) | 2,221,906) | 2,770,312) | 2,793,342) | 2,776,829) | 1,676,757) | 1,364,986) | 1,687,776) | 1,582,002) | 1,770,542) | 1,508,632) | 1,483,680) | 1,365,035) | 849,955) | ||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||||||
| Quick ratio1 | 1.40 | 1.32 | 1.24 | 1.14 | 1.02 | 0.86 | 0.76 | 0.98 | 1.06 | 1.36 | 1.34 | 1.34 | 1.44 | 1.54 | 1.24 | 0.82 | 0.76 | 1.12 | 1.31 | 1.05 | 0.87 | 0.70 | 0.85 | 0.88 | 1.03 | 1.55 | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Quick Ratio, Competitors2 | ||||||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 1.66 | 1.56 | 1.57 | 1.79 | 1.71 | 1.67 | 1.42 | 1.40 | 1.52 | 1.57 | 1.48 | 1.82 | 1.83 | 1.49 | 1.64 | 2.01 | 1.85 | 1.80 | 1.62 | 1.46 | 1.55 | — | — | — | — | ||||||||
| Applied Materials Inc. | 1.62 | 1.84 | 1.74 | 1.95 | 1.79 | 1.72 | 1.63 | 1.43 | 1.35 | 1.30 | 1.17 | 1.24 | 1.32 | 1.62 | 1.64 | 2.02 | 2.10 | 2.15 | 1.95 | 1.76 | 1.75 | 1.45 | 1.38 | 1.57 | 1.63 | 1.63 | ||||||||
| Broadcom Inc. | 0.73 | 0.68 | 0.82 | 0.76 | 0.76 | 0.83 | 2.34 | 2.04 | 1.94 | 2.12 | 2.18 | 1.89 | 1.75 | 2.03 | 2.27 | 2.05 | 1.86 | 1.80 | 1.56 | 1.72 | 1.88 | 1.30 | 1.21 | 1.09 | 1.04 | 1.05 | ||||||||
| Intel Corp. | — | 0.75 | 0.72 | 0.77 | 1.01 | 0.91 | 1.01 | 0.97 | 1.00 | 1.15 | 1.01 | 1.08 | 1.22 | 1.56 | 1.38 | 1.46 | 1.30 | 1.23 | 1.24 | 1.15 | 1.48 | 1.22 | — | — | — | — | ||||||||
| KLA Corp. | 1.48 | 1.37 | 1.36 | 1.33 | 1.13 | 1.30 | 1.33 | 1.41 | 1.48 | 1.53 | 1.57 | 1.48 | 1.63 | 1.62 | 1.81 | 1.80 | 1.74 | 1.76 | 1.82 | 1.67 | 1.67 | 1.45 | 1.54 | 1.68 | 2.26 | 2.58 | ||||||||
| Lam Research Corp. | 1.68 | 1.69 | 1.93 | 1.78 | 1.95 | 1.87 | 1.95 | 1.93 | 1.88 | 1.75 | 1.72 | 1.88 | 2.20 | 2.18 | 2.11 | 1.79 | 1.83 | 1.89 | 2.22 | 2.92 | 1.97 | 2.54 | 2.16 | 2.30 | 2.41 | 1.56 | ||||||||
| Micron Technology Inc. | 1.87 | 1.67 | 1.59 | 1.98 | 2.13 | 2.01 | 2.53 | 2.50 | 2.49 | 2.13 | 1.92 | 2.35 | 2.24 | 2.28 | 2.17 | 2.30 | 1.94 | 1.89 | 1.82 | 1.98 | 1.81 | 1.74 | 1.74 | 1.84 | 1.62 | 2.12 | ||||||||
| NVIDIA Corp. | 3.50 | 2.88 | 3.38 | 2.92 | 2.23 | 2.67 | 2.61 | 2.63 | 2.95 | 4.63 | 5.96 | 6.44 | 5.22 | 3.92 | 3.56 | 3.46 | 5.42 | 9.60 | 7.04 | 7.61 | 7.62 | 7.64 | — | — | — | — | ||||||||
| Qualcomm Inc. | 1.84 | 1.79 | 1.64 | 1.64 | 1.85 | 1.70 | 1.51 | 1.47 | 1.32 | 1.21 | 1.01 | 0.90 | 1.16 | 1.25 | 1.34 | 1.38 | 1.64 | 1.78 | 1.75 | 1.57 | 1.33 | 1.54 | 1.65 | 1.54 | 1.33 | 1.30 | ||||||||
| Texas Instruments Inc. | — | 2.76 | 2.55 | 2.88 | 3.13 | 3.40 | 3.12 | 4.12 | 4.24 | 3.93 | 3.67 | 3.98 | 4.13 | 4.60 | 4.45 | 4.74 | 4.08 | 4.86 | 3.34 | 3.16 | 2.84 | 2.54 | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2025-05-03), 10-Q (reporting date: 2025-02-01), 10-K (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-Q (reporting date: 2024-02-03), 10-K (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-K (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-K (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-30), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-Q (reporting date: 2020-02-01), 10-K (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-Q (reporting date: 2019-02-02).
1 Q2 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 3,758,600 ÷ 2,690,642 = 1.40
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations in liquidity over the observed periods, particularly as measured by quick assets, current liabilities, and the quick ratio.
- Total Quick Assets
- This metric demonstrates variability but shows an overall increasing trend when comparing early and late periods. Initial values start around 1,319,594 thousand US dollars and rise with some fluctuations to a peak of approximately 3,437,020 thousand US dollars in October 2021. After a subsequent slight decline, the values stabilize above 3,000,000 thousand US dollars through early 2023, followed by a downward trend reaching approximately 2,427,795 thousand US dollars in October 2023. In the last four quarters, the total quick assets rebound strongly, culminating near 3,758,600 thousand US dollars by May 2025.
- Current Liabilities
- Current liabilities have generally increased over the periods but with significant fluctuations. Starting near 849,955 thousand US dollars, these liabilities rise sharply in the mid-periods, reaching a high of approximately 3,201,971 thousand US dollars in October 2023. The data shows a spike around the May 2021 period, with values peaking near 2,776,829 thousand US dollars and fluctuating subsequently. A gradual decrease is observed toward the end of the period, with liabilities declining to around 2,690,642 thousand US dollars in May 2025.
- Quick Ratio
- The quick ratio exhibits considerable volatility throughout the timeline. Initially, the ratio was strong at 1.55, signaling healthy short-term liquidity relative to current liabilities. This ratio then declines to a low of 0.7 in early 2020, indicating a weaker liquidity position during that period. Between mid-2020 and early 2022, the quick ratio improves considerably, peaking at 1.54 in January 2022. Subsequently, the ratio marginally decreases with some short-term troughs, reaching lows around 0.76 in October 2023, signaling periods of tighter liquidity. However, a marked improvement occurs in the final periods, with the ratio climbing steadily to 1.4 by May 2025.
In summary, the data indicates that liquidity has experienced cycles of strengthening and weakening. Periods of elevated current liabilities, particularly around 2021 and late 2023, temporarily pressured the quick ratio. However, the company appears to restore liquidity buffers subsequently, as reflected by increasing quick assets and an improving quick ratio toward the end of the timeline. The recent upward trend in both quick assets and the quick ratio suggests an enhanced capability to cover short-term obligations without reliance on inventory or longer-term assets.
Cash Ratio
Analog Devices Inc., cash ratio calculation (quarterly data)
| May 3, 2025 | Feb 1, 2025 | Nov 2, 2024 | Aug 3, 2024 | May 4, 2024 | Feb 3, 2024 | Oct 28, 2023 | Jul 29, 2023 | Apr 29, 2023 | Jan 28, 2023 | Oct 29, 2022 | Jul 30, 2022 | Apr 30, 2022 | Jan 29, 2022 | Oct 30, 2021 | Jul 31, 2021 | May 1, 2021 | Jan 30, 2021 | Oct 31, 2020 | Aug 1, 2020 | May 2, 2020 | Feb 1, 2020 | Nov 2, 2019 | Aug 3, 2019 | May 4, 2019 | Feb 2, 2019 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||||||
| Cash and cash equivalents | 2,376,235) | 2,349,994) | 1,991,342) | 2,106,032) | 1,939,695) | 1,303,560) | 958,061) | 1,149,246) | 1,177,609) | 1,670,462) | 1,470,572) | 1,524,960) | 1,737,733) | 1,790,399) | 1,977,964) | 1,480,701) | 1,305,216) | 1,048,063) | 1,055,860) | 1,090,264) | 784,937) | 654,408) | 648,322) | 612,164) | 713,601) | 605,864) | ||||||||
| Short-term investments | —) | 371,460) | 371,822) | 439,667) | 424,117) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||||
| Total cash assets | 2,376,235) | 2,721,454) | 2,363,164) | 2,545,699) | 2,363,812) | 1,303,560) | 958,061) | 1,149,246) | 1,177,609) | 1,670,462) | 1,470,572) | 1,524,960) | 1,737,733) | 1,790,399) | 1,977,964) | 1,480,701) | 1,305,216) | 1,048,063) | 1,055,860) | 1,090,264) | 784,937) | 654,408) | 648,322) | 612,164) | 713,601) | 605,864) | ||||||||
| Current liabilities | 2,690,642) | 2,970,996) | 2,988,280) | 3,226,629) | 3,297,322) | 2,923,366) | 3,200,971) | 2,831,018) | 2,646,410) | 2,433,677) | 2,442,655) | 2,441,201) | 2,326,212) | 2,221,906) | 2,770,312) | 2,793,342) | 2,776,829) | 1,676,757) | 1,364,986) | 1,687,776) | 1,582,002) | 1,770,542) | 1,508,632) | 1,483,680) | 1,365,035) | 849,955) | ||||||||
| Liquidity Ratio | ||||||||||||||||||||||||||||||||||
| Cash ratio1 | 0.88 | 0.92 | 0.79 | 0.79 | 0.72 | 0.45 | 0.30 | 0.41 | 0.44 | 0.69 | 0.60 | 0.62 | 0.75 | 0.81 | 0.71 | 0.53 | 0.47 | 0.63 | 0.77 | 0.65 | 0.50 | 0.37 | 0.43 | 0.41 | 0.52 | 0.71 | ||||||||
| Benchmarks | ||||||||||||||||||||||||||||||||||
| Cash Ratio, Competitors2 | ||||||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 0.95 | 0.70 | 0.61 | 0.86 | 0.93 | 0.86 | 0.76 | 0.83 | 0.90 | 0.92 | 0.84 | 1.08 | 1.17 | 0.85 | 1.01 | 1.31 | 1.09 | 0.95 | 0.73 | 0.73 | 0.70 | — | — | — | — | ||||||||
| Applied Materials Inc. | 0.84 | 1.06 | 1.12 | 1.26 | 1.10 | 1.06 | 0.93 | 0.79 | 0.65 | 0.56 | 0.35 | 0.52 | 0.59 | 0.92 | 0.86 | 1.27 | 1.40 | 1.47 | 1.29 | 1.11 | 1.20 | 0.87 | 0.81 | 0.94 | 1.00 | 0.98 | ||||||||
| Broadcom Inc. | 0.46 | 0.45 | 0.56 | 0.52 | 0.49 | 0.58 | 1.92 | 1.64 | 1.54 | 1.69 | 1.76 | 1.49 | 1.30 | 1.63 | 1.94 | 1.71 | 1.48 | 1.43 | 1.20 | 1.32 | 1.39 | 0.83 | 0.73 | 0.66 | 0.63 | 0.61 | ||||||||
| Intel Corp. | — | 0.65 | 0.62 | 0.69 | 0.91 | 0.78 | 0.89 | 0.87 | 0.89 | 1.01 | 0.88 | 0.81 | 0.99 | 1.32 | 1.03 | 1.17 | 1.00 | 0.93 | 0.97 | 0.83 | 1.15 | 0.87 | — | — | — | — | ||||||||
| KLA Corp. | 0.91 | 0.96 | 0.97 | 0.96 | 0.73 | 0.88 | 0.87 | 0.85 | 0.82 | 0.94 | 0.94 | 0.91 | 1.01 | 1.04 | 1.19 | 1.20 | 1.14 | 1.17 | 1.17 | 0.99 | 0.98 | 0.90 | 0.98 | 1.12 | 1.82 | 2.12 | ||||||||
| Lam Research Corp. | 1.06 | 1.14 | 1.35 | 1.28 | 1.32 | 1.21 | 1.28 | 1.19 | 0.99 | 0.84 | 0.77 | 1.00 | 1.32 | 1.19 | 1.25 | 1.02 | 1.03 | 1.21 | 1.55 | 1.88 | 1.18 | 1.87 | 1.54 | 1.76 | 1.55 | 0.91 | ||||||||
| Micron Technology Inc. | 1.04 | 0.84 | 0.88 | 1.23 | 1.44 | 1.52 | 2.01 | 2.03 | 2.06 | 1.62 | 1.24 | 1.46 | 1.46 | 1.47 | 1.34 | 1.53 | 1.32 | 1.24 | 1.23 | 1.40 | 1.28 | 1.20 | 1.24 | 1.24 | 1.02 | 1.07 | ||||||||
| NVIDIA Corp. | 2.49 | 2.07 | 2.44 | 2.01 | 1.55 | 2.11 | 2.03 | 1.92 | 2.25 | 3.66 | 4.89 | 5.34 | 4.42 | 3.16 | 2.95 | 2.76 | 4.56 | 8.59 | 6.11 | 6.62 | 6.44 | 6.60 | — | — | — | — | ||||||||
| Qualcomm Inc. | 1.45 | 1.44 | 1.27 | 1.34 | 1.51 | 1.31 | 1.18 | 1.02 | 0.85 | 0.82 | 0.54 | 0.58 | 0.86 | 0.92 | 1.04 | 1.13 | 1.27 | 1.33 | 1.29 | 1.34 | 1.02 | 1.24 | 1.37 | 1.32 | 0.98 | 0.98 | ||||||||
| Texas Instruments Inc. | — | 2.01 | 2.08 | 2.37 | 2.66 | 2.93 | 2.58 | 3.37 | 3.52 | 3.29 | 3.04 | 3.25 | 3.28 | 3.89 | 3.79 | 4.05 | 3.36 | 3.93 | 2.75 | 2.53 | 2.29 | 1.99 | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2025-05-03), 10-Q (reporting date: 2025-02-01), 10-K (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-Q (reporting date: 2024-02-03), 10-K (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-K (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-K (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-30), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-Q (reporting date: 2020-02-01), 10-K (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-Q (reporting date: 2019-02-02).
1 Q2 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 2,376,235 ÷ 2,690,642 = 0.88
2 Click competitor name to see calculations.
The financial data reveals several notable trends and patterns over the observed periods for the company's liquidity and short-term financial health.
- Total Cash Assets
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There is a general upward trajectory in total cash assets from early 2019 through to mid-2021, increasing substantially from approximately 606 million US dollars to nearly 2 billion US dollars. A slight decline is observed towards late 2022, followed by fluctuating values through 2023. Notably, a significant recovery and increase occur again around early 2024, reaching over 2.7 billion US dollars before a moderate decline towards mid-2025.
- Current Liabilities
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The current liabilities show a consistent increasing trend over the entire period, starting from roughly 850 million US dollars in early 2019 and rising steadily to over 3.2 billion US dollars by late 2024. There is a slight decrease observed in early to mid-2025; however, liabilities remain significantly higher than at the beginning of the period, indicating growing short-term obligations.
- Cash Ratio
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The cash ratio, defined as total cash assets divided by current liabilities, exhibits considerable volatility throughout the timeline. Starting at a relatively healthy ratio of 0.71 in early 2019, it declines sharply to a low of 0.3 in late 2023, suggesting that cash reserves were insufficient relative to the liabilities during this period. Following this trough, the cash ratio improves markedly, climbing back above 0.7 by early 2024 and further reaching approximately 0.9 by mid-2025, indicating a strengthened liquidity position.
This pattern of decline and recovery in the cash ratio appears closely linked to fluctuations in both cash assets and current liabilities. Despite the consistent rise in liabilities, the significant increases in cash assets in the latter periods contribute to enhanced liquidity ratios.
Overall, the company demonstrates an increasing scale of operation with rising current liabilities balanced against cash asset growth. The cash ratio fluctuations highlight periods of tighter liquidity, particularly in 2023, followed by improvements that suggest effective cash management or capital inflows in recent quarters.