Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Analog Devices Inc., solvency ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-08-02), 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 analysis of the financial leverage and debt-related ratios over the specified quarters reveals several key trends.
- Debt to Equity Ratio
- This ratio exhibited a gradual decline from 0.54 in early 2019 to a notably lower level of 0.18 by late 2021, indicating a reduction in reliance on debt financing relative to equity. However, from the beginning of 2022 onwards, the ratio stabilized around 0.17-0.19, with a slight upward trend towards 0.25 by mid-2025, suggesting a modest increase in leverage in recent periods.
- Debt to Capital Ratio
- A similar pattern is observed in the debt to capital ratio, decreasing from 0.35 in early 2019 to approximately 0.15 in late 2021. Post-2021, the ratio maintained relative stability between 0.14 and 0.16 before rising to around 0.20 by mid-2025. This indicates that the proportion of debt in the company's capital structure was significantly reduced before gradually increasing again.
- Debt to Assets Ratio
- This ratio decreased from 0.29 at the start of 2019 to about 0.13 by late 2021, reflecting a decline in the company's debt load relative to its total assets. From there, the ratio showed small fluctuations but generally trended upward to around 0.18 in mid-2025, indicating a slight increase in debt financing relative to asset base in the most recent periods.
- Financial Leverage Ratio
- The financial leverage ratio declined from approximately 1.88 in early 2019 to around 1.38 by late 2021, consistent with the reduction in debt ratios. Subsequently, it remained relatively stable around 1.36-1.41 through mid-2025, suggesting that while the company reduced its leverage over the earlier period, the equity base relative to assets has since stabilized with minor fluctuations.
- Interest Coverage Ratio
- Interest coverage data begins from late 2019, starting at a ratio of 7.49, which then increased steadily, peaking at 19.42 in early 2023. This substantial rise indicates improved ability to cover interest expenses through operating income, likely reflecting stronger earnings and/or lower interest burden. After this peak, the ratio declined to a range between approximately 6.3 and 8.5 toward mid-2025, indicating some reduction in coverage capacity but remaining at a relatively comfortable level.
Overall, the financial data illustrates a consistent reduction in debt utilization relative to equity, capital, and assets through the period ending late 2021, accompanied by improved interest coverage reflecting stronger earnings or reduced financial costs. Since then, the company’s leverage ratios have shown minor increases and stabilization, while the interest coverage ratio has moderated from its peak but remains adequate. These patterns suggest strategic management of capital structure, balancing between reducing financial risk and maintaining sufficient leverage for operations.
Debt Ratios
Coverage Ratios
Debt to Equity
Analog Devices Inc., debt to equity calculation (quarterly data)
| Aug 2, 2025 | 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) | |||||||||||||||||||||||||||||||||||
| Debt, current | —) | —) | 399,855) | 399,636) | 899,251) | 898,776) | 499,322) | 499,052) | —) | —) | —) | —) | —) | —) | —) | 516,663) | 1,324,677) | 1,324,451) | 399,220) | —) | 449,324) | 448,945) | 748,460) | 299,667) | 411,434) | 374,165) | —) | ||||||||
| Commercial paper notes | 548,665) | 548,720) | 548,403) | 547,738) | 547,443) | 548,235) | 544,444) | 547,224) | 544,710) | 253,635) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||||
| Long-term debt, excluding current | 8,139,938) | 6,648,417) | 6,618,556) | 6,634,313) | 6,655,723) | 6,611,681) | 5,946,673) | 5,902,457) | 6,437,650) | 6,475,646) | 6,543,250) | 6,548,625) | 6,252,839) | 6,253,215) | 6,253,575) | 6,253,212) | 3,824,819) | 3,823,595) | 4,747,347) | 5,145,102) | 5,143,653) | 5,142,223) | 4,745,302) | 5,192,252) | 5,278,643) | 5,612,365) | 6,234,517) | ||||||||
| Total debt | 8,688,603) | 7,197,137) | 7,566,814) | 7,581,687) | 8,102,417) | 8,058,692) | 6,990,439) | 6,948,733) | 6,982,360) | 6,729,281) | 6,543,250) | 6,548,625) | 6,252,839) | 6,253,215) | 6,253,575) | 6,769,875) | 5,149,496) | 5,148,046) | 5,146,567) | 5,145,102) | 5,592,977) | 5,591,168) | 5,493,762) | 5,491,919) | 5,690,077) | 5,986,530) | 6,234,517) | ||||||||
| Shareholders’ equity | 34,085,842) | 35,010,620) | 35,070,535) | 35,176,317) | 35,190,109) | 35,248,789) | 35,548,073) | 35,565,122) | 35,903,746) | 36,013,224) | 36,531,485) | 36,465,323) | 36,638,591) | 37,099,782) | 37,427,312) | 37,992,542) | 12,263,963) | 12,167,104) | 12,087,746) | 11,997,945) | 11,777,560) | 11,590,858) | 11,689,517) | 11,709,188) | 11,790,237) | 11,742,258) | 11,585,437) | ||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||||||
| Debt to equity1 | 0.25 | 0.21 | 0.22 | 0.22 | 0.23 | 0.23 | 0.20 | 0.20 | 0.19 | 0.19 | 0.18 | 0.18 | 0.17 | 0.17 | 0.17 | 0.18 | 0.42 | 0.42 | 0.43 | 0.43 | 0.47 | 0.48 | 0.47 | 0.47 | 0.48 | 0.51 | 0.54 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 0.05 | 0.07 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.05 | 0.05 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | 0.06 | 0.10 | 0.21 | 0.16 | — | — | — | — | ||||||||
| Applied Materials Inc. | 0.32 | 0.33 | 0.34 | 0.33 | 0.33 | 0.31 | 0.32 | 0.34 | 0.37 | 0.40 | 0.42 | 0.45 | 0.45 | 0.47 | 0.46 | 0.45 | 0.45 | 0.45 | 0.47 | 0.52 | 0.57 | 0.76 | 0.61 | 0.65 | 0.65 | 0.65 | 0.65 | ||||||||
| Broadcom Inc. | — | 0.97 | 0.95 | 1.00 | 1.07 | 1.06 | 1.08 | 1.64 | 1.78 | 1.79 | 1.69 | 1.74 | 1.89 | 1.88 | 1.72 | 1.59 | 1.66 | 1.69 | 1.75 | 1.72 | 1.87 | 1.92 | 1.84 | 1.32 | 1.75 | 1.69 | 1.62 | ||||||||
| Intel Corp. | — | 0.52 | 0.50 | 0.50 | 0.50 | 0.46 | 0.49 | 0.47 | 0.48 | 0.49 | 0.51 | 0.41 | 0.40 | 0.35 | 0.36 | 0.40 | 0.45 | 0.42 | 0.45 | 0.45 | 0.49 | 0.47 | 0.52 | — | — | — | — | ||||||||
| KLA Corp. | 1.47 | 1.64 | 1.86 | 1.97 | 2.14 | 1.94 | 1.97 | 2.02 | 2.20 | 2.35 | 3.00 | 4.75 | 0.91 | 0.85 | 0.89 | 1.02 | 1.11 | 1.18 | 1.25 | 1.30 | 1.49 | 1.27 | 1.29 | — | — | — | — | ||||||||
| Lam Research Corp. | 0.47 | 0.57 | 0.59 | 0.58 | 0.62 | 0.61 | 0.62 | 0.61 | 0.60 | 0.60 | 0.67 | 0.80 | 0.83 | 0.77 | 0.86 | 0.83 | 1.08 | 1.06 | 1.08 | 1.12 | 1.12 | 1.01 | 0.90 | — | — | — | — | ||||||||
| Micron Technology Inc. | 0.31 | 0.30 | 0.29 | 0.30 | 0.30 | 0.31 | 0.31 | 0.30 | 0.29 | 0.26 | 0.21 | 0.14 | 0.14 | 0.15 | 0.15 | 0.15 | 0.16 | 0.16 | 0.17 | 0.17 | 0.18 | 0.15 | 0.15 | 0.16 | 0.14 | 0.18 | 0.12 | ||||||||
| NVIDIA Corp. | 0.13 | 0.15 | 0.20 | 0.23 | 0.29 | 0.35 | 0.45 | 0.50 | 0.51 | 0.46 | 0.42 | 0.41 | 0.46 | 0.56 | 0.37 | 0.41 | 0.45 | 0.50 | 0.53 | 0.16 | 0.18 | 0.19 | 0.20 | — | — | — | — | ||||||||
| Qualcomm Inc. | 0.54 | 0.53 | 0.54 | 0.56 | 0.59 | 0.63 | 0.67 | 0.71 | 0.75 | 0.81 | 0.90 | 0.86 | 0.97 | 1.18 | 1.39 | 1.58 | 1.92 | 2.12 | 2.13 | 2.59 | 4.82 | 5.24 | 3.53 | 3.25 | 3.01 | 4.24 | 4.53 | ||||||||
| Texas Instruments Inc. | — | 0.86 | 0.78 | 0.80 | 0.80 | 0.81 | 0.84 | 0.66 | 0.67 | 0.70 | 0.66 | 0.60 | 0.55 | 0.51 | 0.55 | 0.58 | 0.64 | 0.56 | 0.61 | 0.74 | 0.82 | 0.89 | 0.85 | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2025-08-02), 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 Q3 2025 Calculation
Debt to equity = Total debt ÷ Shareholders’ equity
= 8,688,603 ÷ 34,085,842 = 0.25
2 Click competitor name to see calculations.
- Total Debt
- The total debt experienced a gradual decline from February 2019 through October 2020, decreasing from approximately $6.23 billion to $5.15 billion. This trend shows a reduction in the company’s leverage during that period. However, starting in October 2020, total debt began to rise significantly, peaking near $8.07 billion in May 2024. After this peak, there is a decline observed again, with total debt falling to about $8.69 billion by August 2025. Overall, the long-term movement indicates an initial debt reduction followed by a substantial increase, reflecting intensified borrowing or liability accumulation in the later periods.
- Shareholders’ Equity
- Shareholders’ equity remained relatively stable and showed slight growth from February 2019 to July 2021, moving from about $11.59 billion to $12.26 billion. A sharp and substantial increase occurs in October 2021, where equity jumps to approximately $38.0 billion, and then gradually declines over subsequent quarters to reach $34.1 billion by August 2025. This significant one-time increase suggests a major event such as asset revaluation, issuance of shares, or a similar equity-boosting transaction during late 2021. After this spike, the downward trend indicates a slow reduction in equity value, although it remains significantly above the pre-October 2021 levels throughout the remaining periods.
- Debt to Equity Ratio
- The debt to equity ratio declined steadily from 0.54 in February 2019 to 0.42 by July 2021, consistent with the decline in total debt and stable equity noted in the same period. Starting October 2021, there is a marked drop in the ratio to 0.18, coinciding with the sharp equity increase. Post-October 2021, the ratio fluctuates mildly between 0.17 and 0.25, generally trending upward. This increase reflects the rising total debt levels combined with the gradual reduction in shareholders’ equity over time. Despite this increase, the ratio remains well below the earlier pre-2021 values, indicating relatively lower leverage compared to the first part of the period analyzed.
- Overall Analysis
- Over the examined timeframe, the company demonstrated prudent debt reduction until mid-2020, followed by a phase of significant borrowing and total debt buildup. A notable equity event in late 2021 dramatically changed the capital structure, greatly increasing equity and causing a sharp decline in leverage ratios. Subsequently, the company has experienced increasing debt and slowly declining equity, resulting in a moderate rise in leverage but still maintaining lower debt-to-equity ratios than in the earlier years. This dynamic suggests a capital management strategy influenced by a substantial equity transaction and changing borrowing requirements post-2021, impacting the company’s financial risk profile.
Debt to Capital
Analog Devices Inc., debt to capital calculation (quarterly data)
| Aug 2, 2025 | 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) | |||||||||||||||||||||||||||||||||||
| Debt, current | —) | —) | 399,855) | 399,636) | 899,251) | 898,776) | 499,322) | 499,052) | —) | —) | —) | —) | —) | —) | —) | 516,663) | 1,324,677) | 1,324,451) | 399,220) | —) | 449,324) | 448,945) | 748,460) | 299,667) | 411,434) | 374,165) | —) | ||||||||
| Commercial paper notes | 548,665) | 548,720) | 548,403) | 547,738) | 547,443) | 548,235) | 544,444) | 547,224) | 544,710) | 253,635) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||||
| Long-term debt, excluding current | 8,139,938) | 6,648,417) | 6,618,556) | 6,634,313) | 6,655,723) | 6,611,681) | 5,946,673) | 5,902,457) | 6,437,650) | 6,475,646) | 6,543,250) | 6,548,625) | 6,252,839) | 6,253,215) | 6,253,575) | 6,253,212) | 3,824,819) | 3,823,595) | 4,747,347) | 5,145,102) | 5,143,653) | 5,142,223) | 4,745,302) | 5,192,252) | 5,278,643) | 5,612,365) | 6,234,517) | ||||||||
| Total debt | 8,688,603) | 7,197,137) | 7,566,814) | 7,581,687) | 8,102,417) | 8,058,692) | 6,990,439) | 6,948,733) | 6,982,360) | 6,729,281) | 6,543,250) | 6,548,625) | 6,252,839) | 6,253,215) | 6,253,575) | 6,769,875) | 5,149,496) | 5,148,046) | 5,146,567) | 5,145,102) | 5,592,977) | 5,591,168) | 5,493,762) | 5,491,919) | 5,690,077) | 5,986,530) | 6,234,517) | ||||||||
| Shareholders’ equity | 34,085,842) | 35,010,620) | 35,070,535) | 35,176,317) | 35,190,109) | 35,248,789) | 35,548,073) | 35,565,122) | 35,903,746) | 36,013,224) | 36,531,485) | 36,465,323) | 36,638,591) | 37,099,782) | 37,427,312) | 37,992,542) | 12,263,963) | 12,167,104) | 12,087,746) | 11,997,945) | 11,777,560) | 11,590,858) | 11,689,517) | 11,709,188) | 11,790,237) | 11,742,258) | 11,585,437) | ||||||||
| Total capital | 42,774,445) | 42,207,757) | 42,637,349) | 42,758,004) | 43,292,526) | 43,307,481) | 42,538,512) | 42,513,855) | 42,886,106) | 42,742,505) | 43,074,735) | 43,013,948) | 42,891,430) | 43,352,997) | 43,680,887) | 44,762,417) | 17,413,459) | 17,315,150) | 17,234,313) | 17,143,047) | 17,370,537) | 17,182,026) | 17,183,279) | 17,201,107) | 17,480,314) | 17,728,788) | 17,819,954) | ||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||||||
| Debt to capital1 | 0.20 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.16 | 0.16 | 0.16 | 0.16 | 0.15 | 0.15 | 0.15 | 0.14 | 0.14 | 0.15 | 0.30 | 0.30 | 0.30 | 0.30 | 0.32 | 0.33 | 0.32 | 0.32 | 0.33 | 0.34 | 0.35 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 0.05 | 0.07 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.05 | 0.03 | 0.04 | 0.04 | 0.04 | 0.05 | 0.05 | 0.09 | 0.17 | 0.14 | — | — | — | — | ||||||||
| Applied Materials Inc. | 0.24 | 0.25 | 0.25 | 0.25 | 0.25 | 0.23 | 0.24 | 0.25 | 0.27 | 0.29 | 0.30 | 0.31 | 0.31 | 0.32 | 0.31 | 0.31 | 0.31 | 0.31 | 0.32 | 0.34 | 0.36 | 0.43 | 0.38 | 0.39 | 0.40 | 0.39 | 0.39 | ||||||||
| Broadcom Inc. | — | 0.49 | 0.49 | 0.50 | 0.52 | 0.51 | 0.52 | 0.62 | 0.64 | 0.64 | 0.63 | 0.64 | 0.65 | 0.65 | 0.63 | 0.61 | 0.62 | 0.63 | 0.64 | 0.63 | 0.65 | 0.66 | 0.65 | 0.57 | 0.64 | 0.63 | 0.62 | ||||||||
| Intel Corp. | — | 0.34 | 0.33 | 0.34 | 0.34 | 0.32 | 0.33 | 0.32 | 0.32 | 0.33 | 0.34 | 0.29 | 0.28 | 0.26 | 0.27 | 0.29 | 0.31 | 0.29 | 0.31 | 0.31 | 0.33 | 0.32 | 0.34 | — | — | — | — | ||||||||
| KLA Corp. | 0.59 | 0.62 | 0.65 | 0.66 | 0.68 | 0.66 | 0.66 | 0.67 | 0.69 | 0.70 | 0.75 | 0.83 | 0.48 | 0.46 | 0.47 | 0.50 | 0.52 | 0.54 | 0.55 | 0.57 | 0.60 | 0.56 | 0.56 | — | — | — | — | ||||||||
| Lam Research Corp. | 0.32 | 0.36 | 0.37 | 0.37 | 0.38 | 0.38 | 0.38 | 0.38 | 0.37 | 0.38 | 0.40 | 0.44 | 0.45 | 0.44 | 0.46 | 0.45 | 0.52 | 0.51 | 0.52 | 0.53 | 0.53 | 0.50 | 0.47 | — | — | — | — | ||||||||
| Micron Technology Inc. | 0.23 | 0.23 | 0.23 | 0.23 | 0.23 | 0.24 | 0.24 | 0.23 | 0.23 | 0.21 | 0.17 | 0.12 | 0.12 | 0.13 | 0.13 | 0.13 | 0.14 | 0.14 | 0.14 | 0.15 | 0.15 | 0.13 | 0.13 | 0.14 | 0.12 | 0.15 | 0.11 | ||||||||
| NVIDIA Corp. | 0.11 | 0.13 | 0.16 | 0.18 | 0.23 | 0.26 | 0.31 | 0.33 | 0.34 | 0.31 | 0.29 | 0.29 | 0.32 | 0.36 | 0.27 | 0.29 | 0.31 | 0.33 | 0.35 | 0.14 | 0.15 | 0.16 | 0.17 | — | — | — | — | ||||||||
| Qualcomm Inc. | 0.35 | 0.35 | 0.35 | 0.36 | 0.37 | 0.39 | 0.40 | 0.42 | 0.43 | 0.45 | 0.47 | 0.46 | 0.49 | 0.54 | 0.58 | 0.61 | 0.66 | 0.68 | 0.68 | 0.72 | 0.83 | 0.84 | 0.78 | 0.76 | 0.75 | 0.81 | 0.82 | ||||||||
| Texas Instruments Inc. | — | 0.46 | 0.44 | 0.45 | 0.45 | 0.45 | 0.46 | 0.40 | 0.40 | 0.41 | 0.40 | 0.37 | 0.35 | 0.34 | 0.36 | 0.37 | 0.39 | 0.36 | 0.38 | 0.43 | 0.45 | 0.47 | 0.46 | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2025-08-02), 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 Q3 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= 8,688,603 ÷ 42,774,445 = 0.20
2 Click competitor name to see calculations.
- Total Debt
- Over the period analyzed, total debt exhibited fluctuations with an initial downward trend from February 2019 through October 2020, decreasing from approximately 6.2 billion USD to around 5.1 billion USD. Following this period, a notable increase occurred in late 2021, with total debt rising sharply to roughly 6.8 billion USD and remaining elevated thereafter. From early 2022 to mid-2023, the debt level stabilized near 6.2 to 7 billion USD, but starting late 2023, another increase took place, peaking at approximately 8.7 billion USD in August 2025.
- Total Capital
- Total capital showed a relatively stable level from early 2019 through late 2021, fluctuating slightly around 17 to 18 billion USD. There was a significant jump observed at the end of 2021, with total capital reaching over 44 billion USD. Subsequent quarters saw a moderate decline, followed by a general stability in the range of approximately 42 to 43 billion USD from early 2022 through mid-2025. Small oscillations were noted within this period but without a sustained upward or downward trend.
- Debt to Capital Ratio
- The debt to capital ratio initially declined from 0.35 in early 2019 to approximately 0.30 by late 2020, indicating a reduction in leverage. A marked decrease occurred at the end of 2021, with the ratio dropping to around 0.15, reflecting an abrupt rise in total capital relative to debt. This lower leverage ratio was maintained into early 2023, followed by a gradual increase from about 0.15 to 0.20 by August 2025, suggesting a moderate rise in debt levels relative to capital during this latter period.
- Overall Observations
- The data reveals two distinct phases: one of decreasing leverage with stable capital in the 2019–2020 timeframe, and another characterized by a significant expansion in capital at the end of 2021 accompanied by a reduction in leverage. After this inflection point, debt started to grow again steadily, albeit at a slower pace than capital, resulting in a moderate increase in the debt to capital ratio in recent quarters. These movements suggest strategic adjustments in the company’s capital structure, potentially involving increased equity or asset base expansion at the end of 2021, followed by progressive borrowing thereafter.
Debt to Assets
Analog Devices Inc., debt to assets calculation (quarterly data)
| Aug 2, 2025 | 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 | |||||||||
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| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||||||
| Debt, current | —) | —) | 399,855) | 399,636) | 899,251) | 898,776) | 499,322) | 499,052) | —) | —) | —) | —) | —) | —) | —) | 516,663) | 1,324,677) | 1,324,451) | 399,220) | —) | 449,324) | 448,945) | 748,460) | 299,667) | 411,434) | 374,165) | —) | ||||||||
| Commercial paper notes | 548,665) | 548,720) | 548,403) | 547,738) | 547,443) | 548,235) | 544,444) | 547,224) | 544,710) | 253,635) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | —) | ||||||||
| Long-term debt, excluding current | 8,139,938) | 6,648,417) | 6,618,556) | 6,634,313) | 6,655,723) | 6,611,681) | 5,946,673) | 5,902,457) | 6,437,650) | 6,475,646) | 6,543,250) | 6,548,625) | 6,252,839) | 6,253,215) | 6,253,575) | 6,253,212) | 3,824,819) | 3,823,595) | 4,747,347) | 5,145,102) | 5,143,653) | 5,142,223) | 4,745,302) | 5,192,252) | 5,278,643) | 5,612,365) | 6,234,517) | ||||||||
| Total debt | 8,688,603) | 7,197,137) | 7,566,814) | 7,581,687) | 8,102,417) | 8,058,692) | 6,990,439) | 6,948,733) | 6,982,360) | 6,729,281) | 6,543,250) | 6,548,625) | 6,252,839) | 6,253,215) | 6,253,575) | 6,769,875) | 5,149,496) | 5,148,046) | 5,146,567) | 5,145,102) | 5,592,977) | 5,591,168) | 5,493,762) | 5,491,919) | 5,690,077) | 5,986,530) | 6,234,517) | ||||||||
| Total assets | 48,192,601) | 47,344,487) | 47,967,546) | 48,228,277) | 48,618,374) | 48,861,866) | 48,388,464) | 48,794,478) | 49,346,739) | 49,544,739) | 50,234,520) | 50,302,350) | 50,346,170) | 50,800,652) | 51,215,614) | 52,322,071) | 21,641,190) | 21,588,217) | 21,440,110) | 21,468,603) | 21,599,568) | 21,350,938) | 21,376,827) | 21,392,641) | 21,566,650) | 21,776,325) | 21,828,278) | ||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||||||
| Debt to assets1 | 0.18 | 0.15 | 0.16 | 0.16 | 0.17 | 0.16 | 0.14 | 0.14 | 0.14 | 0.14 | 0.13 | 0.13 | 0.12 | 0.12 | 0.12 | 0.13 | 0.24 | 0.24 | 0.24 | 0.24 | 0.26 | 0.26 | 0.26 | 0.26 | 0.26 | 0.27 | 0.29 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 0.04 | 0.06 | 0.02 | 0.02 | 0.03 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.04 | 0.03 | 0.03 | 0.03 | 0.03 | 0.03 | 0.04 | 0.05 | 0.10 | 0.08 | — | — | — | — | ||||||||
| Applied Materials Inc. | 0.18 | 0.19 | 0.19 | 0.18 | 0.19 | 0.17 | 0.18 | 0.18 | 0.19 | 0.19 | 0.20 | 0.20 | 0.21 | 0.21 | 0.21 | 0.21 | 0.22 | 0.23 | 0.23 | 0.24 | 0.26 | 0.31 | 0.27 | 0.28 | 0.28 | 0.28 | 0.28 | ||||||||
| Broadcom Inc. | — | 0.41 | 0.40 | 0.41 | 0.42 | 0.42 | 0.43 | 0.54 | 0.55 | 0.55 | 0.54 | 0.54 | 0.55 | 0.55 | 0.54 | 0.53 | 0.53 | 0.54 | 0.54 | 0.54 | 0.56 | 0.56 | 0.55 | 0.49 | 0.54 | 0.53 | 0.52 | ||||||||
| Intel Corp. | — | 0.26 | 0.26 | 0.25 | 0.26 | 0.26 | 0.27 | 0.26 | 0.26 | 0.26 | 0.27 | 0.23 | 0.23 | 0.21 | 0.21 | 0.23 | 0.24 | 0.23 | 0.24 | 0.24 | 0.25 | 0.25 | 0.27 | — | — | — | — | ||||||||
| KLA Corp. | 0.39 | 0.39 | 0.42 | 0.43 | 0.44 | 0.41 | 0.42 | 0.42 | 0.43 | 0.45 | 0.48 | 0.53 | 0.31 | 0.29 | 0.31 | 0.34 | 0.35 | 0.35 | 0.37 | 0.37 | 0.39 | 0.37 | 0.37 | — | — | — | — | ||||||||
| Lam Research Corp. | 0.22 | 0.25 | 0.26 | 0.27 | 0.27 | 0.27 | 0.27 | 0.27 | 0.26 | 0.26 | 0.27 | 0.29 | 0.30 | 0.30 | 0.32 | 0.31 | 0.38 | 0.38 | 0.39 | 0.40 | 0.39 | 0.37 | 0.36 | — | — | — | — | ||||||||
| Micron Technology Inc. | 0.20 | 0.20 | 0.19 | 0.19 | 0.20 | 0.21 | 0.21 | 0.21 | 0.20 | 0.18 | 0.15 | 0.10 | 0.11 | 0.11 | 0.11 | 0.12 | 0.12 | 0.12 | 0.12 | 0.12 | 0.13 | 0.11 | 0.11 | 0.12 | 0.11 | 0.13 | 0.09 | ||||||||
| NVIDIA Corp. | 0.09 | 0.10 | 0.13 | 0.15 | 0.18 | 0.20 | 0.25 | 0.27 | 0.27 | 0.25 | 0.24 | 0.25 | 0.27 | 0.31 | 0.23 | 0.24 | 0.26 | 0.28 | 0.30 | 0.11 | 0.13 | 0.13 | 0.14 | — | — | — | — | ||||||||
| Qualcomm Inc. | 0.27 | 0.26 | 0.26 | 0.27 | 0.28 | 0.29 | 0.30 | 0.30 | 0.32 | 0.33 | 0.34 | 0.32 | 0.33 | 0.35 | 0.37 | 0.38 | 0.41 | 0.42 | 0.42 | 0.44 | 0.49 | 0.50 | 0.48 | 0.48 | 0.48 | 0.48 | 0.48 | ||||||||
| Texas Instruments Inc. | — | 0.40 | 0.38 | 0.38 | 0.39 | 0.40 | 0.41 | 0.35 | 0.35 | 0.36 | 0.35 | 0.32 | 0.30 | 0.29 | 0.31 | 0.31 | 0.33 | 0.30 | 0.32 | 0.35 | 0.37 | 0.39 | 0.38 | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2025-08-02), 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 Q3 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= 8,688,603 ÷ 48,192,601 = 0.18
2 Click competitor name to see calculations.
The analysis of the financial data reveals several notable trends related to the company's debt levels, asset base, and the relationship between these two factors as measured by the debt to assets ratio over multiple quarterly periods.
- Total Debt
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Total debt showed a general decreasing trend from February 2019 through October 2020, dropping from approximately $6.23 billion to about $5.15 billion. However, beginning in late 2020, total debt increased significantly, reaching peaks above $8 billion in the periods spanning 2024 and early 2025. This reflects a pattern of initial deleveraging followed by a phase of increased borrowing or capital raising through debt instruments in recent quarters.
- Total Assets
-
Total assets remained relatively stable with minor fluctuations from February 2019 until October 2021, around the $21.3 billion mark. Starting in the November 2021 period, there is a notable jump in reported assets, reaching over $52 billion, which then gradually declines to approximately $48.2 billion by August 2025. This large increase and subsequent decline may suggest a significant revaluation, acquisition, or other large-scale asset event occurring near late 2021, followed by a normalization or asset disposition thereafter.
- Debt to Assets Ratio
-
The debt to assets ratio initially decreased from 0.29 in early 2019 to approximately 0.24 by late 2020, indicating improving leverage and potentially stronger balance sheet management during that period. Beginning in late 2021, concurrently with the spike in total assets, this ratio dropped sharply to around 0.13, reflecting the impact of the large increase in asset base which outpaced debt growth.
In subsequent quarters, the ratio gradually increased, moving toward 0.18 by mid-2025. This gradual increase corresponds with the rising levels of total debt coupled with the declining asset base in these periods. Despite the recent upward trend, the level remains below the early 2019 proportion, indicating a relatively more conservative leverage position compared to the start of the analyzed timeframe.
In summary, the data depict a company that initially reduced its debt relative to assets, experienced a marked increase in assets—likely due to significant financial or strategic transactions—followed by a period of rising debt and moderate asset base contraction. This pattern suggests active management of capital structure and possible strategic repositioning.
Financial Leverage
Analog Devices Inc., financial leverage calculation (quarterly data)
| Aug 2, 2025 | 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) | |||||||||||||||||||||||||||||||||||
| Total assets | 48,192,601) | 47,344,487) | 47,967,546) | 48,228,277) | 48,618,374) | 48,861,866) | 48,388,464) | 48,794,478) | 49,346,739) | 49,544,739) | 50,234,520) | 50,302,350) | 50,346,170) | 50,800,652) | 51,215,614) | 52,322,071) | 21,641,190) | 21,588,217) | 21,440,110) | 21,468,603) | 21,599,568) | 21,350,938) | 21,376,827) | 21,392,641) | 21,566,650) | 21,776,325) | 21,828,278) | ||||||||
| Shareholders’ equity | 34,085,842) | 35,010,620) | 35,070,535) | 35,176,317) | 35,190,109) | 35,248,789) | 35,548,073) | 35,565,122) | 35,903,746) | 36,013,224) | 36,531,485) | 36,465,323) | 36,638,591) | 37,099,782) | 37,427,312) | 37,992,542) | 12,263,963) | 12,167,104) | 12,087,746) | 11,997,945) | 11,777,560) | 11,590,858) | 11,689,517) | 11,709,188) | 11,790,237) | 11,742,258) | 11,585,437) | ||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||||||
| Financial leverage1 | 1.41 | 1.35 | 1.37 | 1.37 | 1.38 | 1.39 | 1.36 | 1.37 | 1.37 | 1.38 | 1.38 | 1.38 | 1.37 | 1.37 | 1.37 | 1.38 | 1.76 | 1.77 | 1.77 | 1.79 | 1.83 | 1.84 | 1.83 | 1.83 | 1.83 | 1.85 | 1.88 | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 1.25 | 1.24 | 1.20 | 1.22 | 1.20 | 1.21 | 1.21 | 1.23 | 1.23 | 1.24 | 1.23 | 1.24 | 1.22 | 1.21 | 1.66 | 1.56 | 1.51 | 1.55 | 1.54 | 1.82 | 1.99 | 1.93 | — | — | — | — | ||||||||
| Applied Materials Inc. | 1.75 | 1.77 | 1.79 | 1.81 | 1.79 | 1.76 | 1.81 | 1.88 | 2.01 | 2.06 | 2.08 | 2.19 | 2.17 | 2.20 | 2.14 | 2.11 | 2.03 | 2.01 | 2.03 | 2.11 | 2.21 | 2.42 | 2.28 | 2.32 | 2.32 | 2.29 | 2.31 | ||||||||
| Broadcom Inc. | — | 2.37 | 2.37 | 2.45 | 2.56 | 2.50 | 2.53 | 3.04 | 3.24 | 3.26 | 3.13 | 3.23 | 3.42 | 3.42 | 3.19 | 3.03 | 3.12 | 3.15 | 3.21 | 3.18 | 3.37 | 3.41 | 3.32 | 2.71 | 3.24 | 3.20 | 3.10 | ||||||||
| Intel Corp. | — | 1.97 | 1.93 | 1.98 | 1.94 | 1.79 | 1.82 | 1.81 | 1.85 | 1.84 | 1.89 | 1.80 | 1.75 | 1.68 | 1.71 | 1.77 | 1.86 | 1.81 | 1.89 | 1.89 | 1.95 | 1.86 | 1.93 | — | — | — | — | ||||||||
| KLA Corp. | 3.79 | 4.19 | 4.41 | 4.58 | 4.83 | 4.69 | 4.73 | 4.82 | 5.10 | 5.27 | 6.24 | 8.99 | 2.95 | 2.89 | 2.89 | 3.04 | 3.19 | 3.34 | 3.39 | 3.48 | 3.83 | 3.46 | 3.47 | — | — | — | — | ||||||||
| Lam Research Corp. | 2.10 | 2.25 | 2.31 | 2.20 | 2.28 | 2.28 | 2.30 | 2.29 | 2.29 | 2.31 | 2.53 | 2.74 | 2.75 | 2.58 | 2.67 | 2.64 | 2.85 | 2.79 | 2.78 | 2.81 | 2.85 | 2.72 | 2.50 | — | — | — | — | ||||||||
| Micron Technology Inc. | 1.54 | 1.50 | 1.53 | 1.54 | 1.50 | 1.50 | 1.49 | 1.46 | 1.45 | 1.41 | 1.38 | 1.33 | 1.32 | 1.33 | 1.33 | 1.34 | 1.32 | 1.33 | 1.35 | 1.38 | 1.38 | 1.34 | 1.36 | 1.36 | 1.31 | 1.37 | 1.32 | ||||||||
| NVIDIA Corp. | 1.46 | 1.47 | 1.57 | 1.53 | 1.63 | 1.80 | 1.81 | 1.86 | 1.90 | 1.82 | 1.72 | 1.66 | 1.71 | 1.83 | 1.64 | 1.70 | 1.75 | 1.81 | 1.78 | 1.42 | 1.41 | 1.43 | 1.44 | — | — | — | — | ||||||||
| Qualcomm Inc. | 2.02 | 2.00 | 2.07 | 2.10 | 2.14 | 2.17 | 2.26 | 2.37 | 2.37 | 2.46 | 2.66 | 2.72 | 2.93 | 3.32 | 3.78 | 4.14 | 4.74 | 5.01 | 5.08 | 5.86 | 9.78 | 10.49 | 7.34 | 6.71 | 6.25 | 8.80 | 9.47 | ||||||||
| Texas Instruments Inc. | — | 2.13 | 2.06 | 2.10 | 2.05 | 2.04 | 2.05 | 1.91 | 1.90 | 1.94 | 1.92 | 1.87 | 1.80 | 1.75 | 1.80 | 1.85 | 1.92 | 1.85 | 1.93 | 2.11 | 2.19 | 2.28 | 2.23 | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2025-08-02), 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 Q3 2025 Calculation
Financial leverage = Total assets ÷ Shareholders’ equity
= 48,192,601 ÷ 34,085,842 = 1.41
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends in the company's asset base, equity levels, and financial leverage over the observed periods. Total assets show a modest decline from early 2019 through the end of 2020, fluctuating around the 21.3 to 21.9 billion US dollar range. A significant increase is observed in October 2021, where total assets jump substantially to over 52 billion US dollars, suggesting a major transaction or revaluation occurred at this point. Following this sharp rise, total assets exhibit a gradual downward trend through mid-2025, settling near 48 billion US dollars, though this level remains elevated compared to the pre-October 2021 period.
Shareholders' equity follows a similar pattern initially, moving slightly upward from roughly 11.6 billion US dollars in early 2019 to about 12.3 billion by late 2021. This is then followed by a pronounced increase in tandem with total assets in October 2021, where equity surges to nearly 38 billion US dollars. Subsequent to this peak, equity levels gently decline but remain stable in the range of 34 to 37 billion US dollars through mid-2025. This trend underscores a substantial strengthening of the equity base post-October 2021, maintaining a solid capital foundation despite later decreases.
Financial leverage, defined as the ratio of total assets to shareholders' equity, exhibits a decrease corresponding with the equity growth. Early in the timeframe, leverage ratios are relatively higher, typically ranging between 1.76 and 1.88. However, after the sharp increases in assets and equity in October 2021, the ratio declines significantly to around 1.36 to 1.41, signaling a lower reliance on debt financing relative to equity. This reduced leverage level is sustained through the latest periods, reflecting a potential strategic shift toward lower financial risk and improved balance sheet stability.
In summary, the data indicates a pivotal event or series of transactions around late 2021 that substantially expanded the company's asset and equity base while concurrently reducing financial leverage. After this adjustment, total assets and equity gradually decrease but remain at historically elevated levels, with leverage maintaining a lower and more conservative range compared to earlier periods. This overall trajectory points to strengthened capitalization and a more conservative financing structure in recent years.
Interest Coverage
Analog Devices Inc., interest coverage calculation (quarterly data)
| Aug 2, 2025 | 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) | |||||||||||||||||||||||||||||||||||
| Net income | 518,518) | 569,770) | 391,316) | 478,072) | 392,232) | 302,242) | 462,727) | 498,430) | 877,019) | 977,656) | 961,474) | 936,226) | 748,985) | 783,273) | 280,077) | 75,687) | 503,311) | 422,905) | 388,519) | 386,526) | 362,665) | 267,696) | 203,874) | 277,694) | 362,374) | 367,937) | 355,006) | ||||||||
| Add: Income tax expense | 244,891) | 56,158) | 44,260) | 38,256) | 30,759) | 22,361) | 50,691) | 73,356) | (2,198) | 110,267) | 111,999) | 111,786) | 98,952) | 95,972) | 43,478) | (231,854) | 68,967) | 53,080) | 48,099) | 30,784) | 10,364) | 27,365) | 22,343) | 10,133) | 27,184) | 40,460) | 44,940) | ||||||||
| Add: Interest expense | 79,592) | 74,703) | 75,264) | 82,804) | 85,179) | 77,103) | 77,141) | 71,590) | 69,346) | 63,252) | 60,453) | 47,707) | 51,189) | 49,548) | 51,964) | 54,621) | 44,659) | 43,066) | 42,479) | 48,593) | 45,914) | 49,985) | 48,813) | 50,775) | 59,871) | 59,701) | 58,728) | ||||||||
| Earnings before interest and tax (EBIT) | 843,001) | 700,631) | 510,840) | 599,132) | 508,170) | 401,706) | 590,559) | 643,376) | 944,167) | 1,151,175) | 1,133,926) | 1,095,719) | 899,126) | 928,793) | 375,519) | (101,546) | 616,937) | 519,051) | 479,097) | 465,903) | 418,943) | 345,046) | 275,030) | 338,602) | 449,429) | 468,098) | 458,674) | ||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||||||
| Interest coverage1 | 8.50 | 7.29 | 6.31 | 6.52 | 6.89 | 8.74 | 11.83 | 14.63 | 17.96 | 19.23 | 19.42 | 16.46 | 10.14 | 9.06 | 7.26 | 8.19 | 11.64 | 10.46 | 9.14 | 7.79 | 7.05 | 6.72 | 6.99 | 7.49 | — | — | — | ||||||||
| Benchmarks | |||||||||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | — | 25.11 | 32.99 | 22.98 | 15.91 | 10.78 | 7.65 | 5.79 | 1.05 | -2.15 | 2.73 | 14.61 | 33.91 | 69.08 | 104.42 | 109.09 | 87.31 | 63.00 | 41.84 | 28.23 | — | — | — | — | — | — | — | ||||||||
| Applied Materials Inc. | 34.71 | 32.79 | 32.62 | 34.00 | 36.27 | 36.06 | 34.86 | 33.42 | 32.62 | 33.39 | 34.20 | 34.33 | 34.58 | 34.95 | 33.14 | 29.69 | 26.24 | 21.94 | 19.19 | 18.36 | 16.68 | 15.79 | 15.35 | 14.79 | — | — | — | ||||||||
| Broadcom Inc. | — | 5.73 | 4.61 | 3.51 | 3.94 | 4.91 | 6.88 | 10.31 | 10.09 | 9.94 | 8.83 | 8.16 | 7.22 | 6.28 | 5.69 | 4.59 | 4.06 | 3.40 | 2.82 | 2.37 | 2.19 | 2.24 | 2.50 | 2.54 | — | — | — | ||||||||
| KLA Corp. | 14.66 | 12.56 | 11.71 | 11.25 | 11.00 | 11.51 | 13.03 | 13.76 | 15.81 | 18.22 | 20.31 | 22.76 | 21.81 | 20.60 | 17.91 | 16.00 | 14.05 | 10.71 | 9.97 | 9.22 | — | — | — | — | — | — | — | ||||||||
| Micron Technology Inc. | 16.43 | 12.88 | 9.29 | 3.19 | -2.13 | -7.02 | -13.14 | -13.58 | -7.73 | 10.11 | 36.19 | 51.66 | 58.47 | 51.74 | 45.03 | 35.18 | 24.82 | 19.35 | 17.83 | 16.41 | 14.78 | 15.68 | 28.05 | 56.09 | — | — | — | ||||||||
| NVIDIA Corp. | 293.83 | 244.51 | 192.72 | 132.59 | 82.40 | 43.66 | 18.63 | 16.96 | 23.23 | 31.40 | 39.65 | 43.12 | 38.65 | 34.29 | 26.81 | 24.96 | 28.27 | 34.95 | 56.66 | 58.12 | — | — | — | — | — | — | — | ||||||||
| Qualcomm Inc. | 19.26 | 18.26 | 17.14 | 15.83 | 14.25 | 13.43 | 12.44 | 11.72 | 15.28 | 22.27 | 26.92 | 31.61 | 31.54 | 24.20 | 21.71 | 19.38 | 18.60 | 16.10 | 13.40 | 10.50 | 6.17 | 13.70 | 13.71 | 12.93 | — | — | — | ||||||||
| Texas Instruments Inc. | — | 11.86 | 11.45 | 11.73 | 12.85 | 14.57 | 17.87 | 22.01 | 26.51 | 33.49 | 42.10 | 47.88 | 51.88 | 52.00 | 51.03 | 49.47 | 46.81 | 42.15 | 36.25 | 32.67 | — | — | — | — | — | — | — | ||||||||
Based on: 10-Q (reporting date: 2025-08-02), 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 Q3 2025 Calculation
Interest coverage
= (EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025
+ EBITQ4 2024)
÷ (Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025
+ Interest expenseQ4 2024)
= (843,001 + 700,631 + 510,840 + 599,132)
÷ (79,592 + 74,703 + 75,264 + 82,804)
= 8.50
2 Click competitor name to see calculations.
The data reveals significant fluctuations in earnings before interest and tax (EBIT) over the observed periods. Initially, EBIT showed a moderate increase from approximately 458,674 thousand US dollars in early 2019 to a peak near 616,937 thousand US dollars in mid-2021. This upward trend was abruptly interrupted by a substantial negative EBIT of around -101,546 thousand US dollars in the last quarter of 2021, indicating a notable loss during that period. Following this setback, EBIT rebounded strongly, reaching a high point above 1,133,926 thousand US dollars by early 2023, before experiencing a gradual decline towards the most recent quarters, settling around 843,001 thousand US dollars in the third quarter of 2025.
Interest expense demonstrated a relatively stable pattern throughout the timeframe, generally remaining in the range of 40,000 to 85,000 thousand US dollars per quarter. While there were minor fluctuations, no clear long-term trend of increase or decrease is apparent. The interest expense tended to peak around the third quarter of 2024 and then showed a slight decrease toward mid-2025.
The interest coverage ratio, which measures the ability to meet interest obligations from operating earnings, experienced considerable variation. The earliest available ratios suggest a range from 6.31 up to 19.42, with the ratio reaching its highest levels in early 2023. Notably, the coverage ratio decreased significantly following the negative EBIT recorded in late 2021, reflecting lower earnings relative to interest expense. After that trough, interest coverage improved again, reaching robust levels well above 10 in some quarters, indicating strong earnings capacity to cover interest costs. Toward the most recent data points, however, the ratio exhibits a declining trend from about 8.5 down to the mid-6 range, signaling some reduction in the buffer between operating earnings and interest commitments.
Overall, the analyzed financial measures indicate a company with volatile EBIT performance, including a sharp loss period followed by substantial recovery and growth phases. Interest expenses remain relatively constant, while interest coverage ratios reflect the impact of earnings fluctuations on the capacity to service debt. The pattern suggests sensitivity of operating income to external or internal factors influencing profitability, with consequential effects on financial risk as expressed through the interest coverage ratio.
- Earnings Before Interest and Tax (EBIT)
- Experienced significant volatility, with initial growth, a notable loss in late 2021, followed by recovery and peaks exceeding one billion US dollars, before a moderate decline in later periods.
- Interest Expense
- Maintained relative stability over time, fluctuating within a moderate range without a discernible trend upward or downward.
- Interest Coverage Ratio
- Varied widely, peaking in early 2023, dipping sharply with the EBIT loss, then improving before declining again in the most recent quarters, reflecting changes in earnings relative to interest obligations.