Stock Analysis on Net

Analog Devices Inc. (NASDAQ:ADI)

$24.99

Analysis of Long-term (Investment) Activity Ratios

Microsoft Excel

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Long-term Activity Ratios (Summary)

Analog Devices Inc., long-term (investment) activity ratios

Microsoft Excel
Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
Net fixed asset turnover
Net fixed asset turnover (including operating lease, right-of-use asset)
Total asset turnover
Equity turnover

Based on: 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), 10-K (reporting date: 2019-11-02).


The analysis of the provided financial ratios over six consecutive years reveals notable fluctuations and trends in asset utilization and turnover efficiency.

Net Fixed Asset Turnover
The net fixed asset turnover ratio begins at 4.91 in 2019 and shows a slight increase to 5 in 2020. Subsequently, it declines significantly to 3.7 in 2021, rebounds to 5 in 2022, but then experiences a steady decrease through 2023 and 2024, reaching 2.76 by the final period. This overall trend suggests a volatility in the efficiency with which the fixed assets are generating sales, with a notable decline in the most recent years.
Net Fixed Asset Turnover (including operating lease, right-of-use asset)
When factoring in operating lease right-of-use assets, the turnover ratio starts at 4.91 in 2019 and declines to 4.07 in 2020, continuing a downward trajectory to 3.24 in 2021. A partial recovery occurs in 2022 (4.51), followed by a decline again through 2023 and 2024, settling at 2.58. This pattern broadly parallels the net fixed asset turnover ratio without leases but indicates a generally lower efficiency when lease assets are included.
Total Asset Turnover
The total asset turnover ratio exhibits a general decline from 0.28 in 2019 to a low of 0.14 in 2021. It then recovers partially in 2022 and 2023 to the mid-0.20s range but declines once more in 2024 to 0.20. This indicates varying effectiveness in employing overall assets to generate revenue, with the lowest utilization observed in 2021.
Equity Turnover
Equity turnover shows a declining trend from 0.51 in 2019 to a low of 0.19 in 2021, followed by a partial recovery in 2022 and 2023 to approximately 0.33-0.35. However, the ratio declines again to 0.27 in 2024. This suggests fluctuations in how efficiently shareholder equity is being used to generate sales, with a peak decline corresponding to the years around 2021.

Overall, the data indicates a period of reduced efficiency and asset utilization around 2021 across all measured ratios, followed by some recovery in 2022 and 2023. However, this recovery does not fully restore previous levels, and a downward trend is again evident by 2024, particularly in fixed asset turnover metrics. The results imply challenges in asset management and utilization with potential implications for operational efficiency and capital deployment strategies.


Net Fixed Asset Turnover

Analog Devices Inc., net fixed asset turnover calculation, comparison to benchmarks

Microsoft Excel
Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
Selected Financial Data (US$ in thousands)
Revenue
Net property, plant and equipment
Long-term Activity Ratio
Net fixed asset turnover1
Benchmarks
Net Fixed Asset Turnover, 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.
Net Fixed Asset Turnover, Sector
Semiconductors & Semiconductor Equipment
Net Fixed Asset Turnover, Industry
Information Technology

Based on: 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), 10-K (reporting date: 2019-11-02).

1 2024 Calculation
Net fixed asset turnover = Revenue ÷ Net property, plant and equipment
= ÷ =

2 Click competitor name to see calculations.


Revenue Trends
The revenue exhibited a fluctuating pattern over the reported periods. It initially decreased from approximately 5.99 billion USD in 2019 to 5.60 billion USD in 2020, followed by a substantial increase to approximately 7.32 billion USD in 2021. The upward trend continued sharply to around 12.01 billion USD in 2022 and slightly rose to about 12.31 billion USD in 2023. However, the revenue saw a notable decline to approximately 9.43 billion USD in 2024, indicating a recent downward shift after several years of growth.
Net Property, Plant, and Equipment
There was a consistent increase in net property, plant, and equipment across the periods. Starting from roughly 1.22 billion USD in 2019, there was a slight dip in 2020 to about 1.12 billion USD, after which the values increased steadily each year, reaching approximately 3.42 billion USD by 2024. This trend reflects continuous investment in fixed assets over the years.
Net Fixed Asset Turnover Ratio
The net fixed asset turnover ratio showed variability, indicating changes in how efficiently the company utilized its fixed assets to generate revenue. It started at 4.91 in 2019 and remained stable in 2020 at 5.00. The ratio dropped significantly to 3.7 in 2021, rebounded back to 5.00 in 2022, then declined again to 3.82 in 2023, and further decreased to 2.76 in 2024. This downward trend in recent years suggests a decline in efficiency related to asset use for revenue generation, especially notable given the concurrent increases in fixed asset values.

Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)

Analog Devices Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks

Microsoft Excel
Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
Selected Financial Data (US$ in thousands)
Revenue
 
Net property, plant and equipment
Operating lease right-of-use assets (in Other assets)
Net property, plant and equipment (including operating lease, right-of-use asset)
Long-term Activity Ratio
Net fixed asset turnover (including operating lease, right-of-use asset)1
Benchmarks
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), 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.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector
Semiconductors & Semiconductor Equipment
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry
Information Technology

Based on: 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), 10-K (reporting date: 2019-11-02).

1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Net property, plant and equipment (including operating lease, right-of-use asset)
= ÷ =

2 Click competitor name to see calculations.


Over the observed periods, the revenue exhibited notable fluctuations. Initially, revenue decreased from approximately 5.99 billion to 5.60 billion US dollars between 2019 and 2020. This was followed by a strong recovery and growth phase, reaching a peak near 12.01 billion in 2022, and maintaining a similar level in 2023. However, in the most recent period, revenue declined significantly to about 9.43 billion US dollars.

Net property, plant, and equipment (net PP&E), including operating lease right-of-use assets, increased steadily over the years. Starting at approximately 1.22 billion US dollars in 2019, this asset base grew consistently each year, reaching nearly 3.66 billion by 2024. This steady expansion suggests ongoing investment in tangible and leased assets throughout the timeframe under review.

Analysis of net fixed asset turnover shows a generally declining trend. The ratio began at 4.91 in 2019, decreased to 4.07 in 2020, and continued downward to 3.24 in 2021. An increase occurred in 2022, with a ratio rising to 4.51, indicating improved efficiency in asset utilization that year. However, subsequent declines brought the ratio down to 3.52 in 2023 and further to 2.58 in 2024, reflecting diminishing revenue generated per unit of fixed assets in those years.

Revenue
Initial decline in 2020, followed by two years of significant growth peaking in 2022, with a subsequent decrease in 2024.
Net Property, Plant, and Equipment
Consistent and steady increase year over year, indicating continuous capital expenditure and asset accumulation.
Net Fixed Asset Turnover
Overall decline over the period despite a temporary rebound in 2022, suggesting reduced efficiency in leveraging fixed assets to generate revenue in recent years.

Total Asset Turnover

Analog Devices Inc., total asset turnover calculation, comparison to benchmarks

Microsoft Excel
Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
Selected Financial Data (US$ in thousands)
Revenue
Total assets
Long-term Activity Ratio
Total asset turnover1
Benchmarks
Total Asset Turnover, 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.
Total Asset Turnover, Sector
Semiconductors & Semiconductor Equipment
Total Asset Turnover, Industry
Information Technology

Based on: 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), 10-K (reporting date: 2019-11-02).

1 2024 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


Revenue
The revenue figures show fluctuations over the observed periods. Starting from approximately 5.99 billion USD in 2019, there is a decline to around 5.60 billion USD in 2020. This is followed by a significant increase to roughly 7.32 billion USD in 2021 and a substantial surge to nearly 12.01 billion USD in 2022. Revenue slightly increases again to about 12.31 billion USD in 2023, before decreasing to approximately 9.43 billion USD in 2024. Overall, the revenue trend exhibits volatility with a marked peak in 2022 and 2023, after which a notable decline is observed in 2024.
Total Assets
Total assets remain relatively stable between 2019 and 2020, with amounts around 21.4 billion and 21.5 billion USD respectively. A dramatic increase occurs in 2021, bringing total assets to approximately 52.32 billion USD. Subsequently, total assets decrease gradually over the next three years to around 50.3 billion in 2022, 48.8 billion in 2023, and 48.2 billion USD in 2024. This pattern indicates an acquisition or expansion event in 2021, followed by a reduction or stabilization in asset base over the following years.
Total Asset Turnover Ratio
The total asset turnover ratio, which measures the efficiency of asset use in generating revenue, declines from 0.28 in 2019 to 0.26 in 2020, and sharply drops to 0.14 in 2021. It then increases to 0.24 in 2022 and slightly rises to 0.25 in 2023, before decreasing again to 0.20 in 2024. This fluctuation parallels the changes in total assets and revenue; the sharp dip in 2021 corresponds with the asset base expansion, indicating initial inefficiencies post-expansion, followed by some recovery in asset utilization. However, the recent decrease in 2024 suggests a decline in asset efficiency.

Equity Turnover

Analog Devices Inc., equity turnover calculation, comparison to benchmarks

Microsoft Excel
Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
Selected Financial Data (US$ in thousands)
Revenue
Shareholders’ equity
Long-term Activity Ratio
Equity turnover1
Benchmarks
Equity Turnover, 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.
Equity Turnover, Sector
Semiconductors & Semiconductor Equipment
Equity Turnover, Industry
Information Technology

Based on: 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), 10-K (reporting date: 2019-11-02).

1 2024 Calculation
Equity turnover = Revenue ÷ Shareholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Revenue Analysis
Revenue exhibited a fluctuating trend over the observed periods. It initially declined from approximately 5.99 billion in 2019 to about 5.60 billion in 2020. Subsequently, there was a significant increase, reaching roughly 7.32 billion in 2021 and peaking at about 12.01 billion in 2022. After a slight growth to around 12.31 billion in 2023, revenue declined substantially to approximately 9.43 billion in 2024.
Shareholders’ Equity Analysis
Shareholders' equity showed an overall increasing pattern from 11.71 billion in 2019 to a sharp rise of nearly 38.0 billion in 2021. However, after 2021, equity values began to decrease gradually, falling to around 36.5 billion in 2022, 35.6 billion in 2023, and further down to approximately 35.2 billion in 2024.
Equity Turnover Analysis
Equity turnover demonstrated a decreasing trend initially, moving from 0.51 in 2019 to 0.47 in 2020 and declining sharply to 0.19 in 2021. It then increased moderately to 0.33 in 2022 and 0.35 in 2023 before dropping again to 0.27 in 2024. This pattern indicates fluctuations in the efficiency of using equity to generate revenue across the periods, with the highest efficiency in early years and a significant decline around 2021, followed by recovery and then another decrease.