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

Analog Devices Inc. (NASDAQ:ADI)

Analysis of Profitability Ratios

Beginner level

Profitability Ratios (Summary)

Analog Devices Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016 Oct 31, 2015
Return on Sales
Gross profit margin 65.87% 67.00% 68.27% 59.94% 65.10% 65.77%
Operating profit margin 26.74% 28.55% 30.35% 20.66% 30.05% 24.19%
Net profit margin 21.79% 22.75% 24.12% 14.24% 25.18% 20.29%
Return on Investment
Return on equity (ROE) 10.17% 11.64% 13.61% 7.16% 16.68% 13.74%
Return on assets (ROA) 5.69% 6.37% 7.31% 3.44% 10.81% 9.87%

Based on: 10-K (filing date: 2020-11-24), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-27), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-22), 10-K (filing date: 2015-11-24).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Analog Devices Inc.’s gross profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Analog Devices Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Analog Devices Inc.’s net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Analog Devices Inc.’s ROE deteriorated from 2018 to 2019 and from 2019 to 2020.
ROA A profitability ratio calculated as net income divided by total assets. Analog Devices Inc.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020.

Gross Profit Margin

Analog Devices Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016 Oct 31, 2015
Selected Financial Data (US$ in thousands)
Gross margin 3,690,478  4,013,750  4,233,302  3,061,596  2,227,173  2,259,262 
Revenue 5,603,056  5,991,065  6,200,942  5,107,503  3,421,409  3,435,092 
Profitability Ratio
Gross profit margin1 65.87% 67.00% 68.27% 59.94% 65.10% 65.77%
Benchmarks
Gross Profit Margin, Competitors2
Advanced Micro Devices Inc. 44.53% 42.61% 37.79% 34.21% 23.36%
Apple Inc. 38.23% 37.82% 38.34% 38.47% 39.08% 40.06%
Applied Materials Inc. 44.72% 43.72% 45.31% 44.93% 41.67% 40.92%
Broadcom Inc. 56.58% 55.24% 51.48% 48.25% 44.86% 52.07%
Cisco Systems Inc. 64.26% 62.94% 62.04% 62.96% 62.87% 60.38%
Intel Corp. 56.01% 58.56% 61.73% 62.25% 60.94%
Lam Research Corp. 45.88% 45.15% 46.63% 44.97% 44.49% 43.43%
Micron Technology Inc. 30.57% 45.72% 58.87% 41.51% 20.20% 32.21%
NVIDIA Corp. 61.99% 61.21% 59.93% 58.80% 56.11% 55.53%
Qualcomm Inc. 60.67% 64.57% 54.94% 56.07% 58.61% 58.95%
Texas Instruments Inc. 64.10% 63.71% 65.11% 64.26% 61.63%

Based on: 10-K (filing date: 2020-11-24), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-27), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-22), 10-K (filing date: 2015-11-24).

1 2020 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenue
= 100 × 3,690,478 ÷ 5,603,056 = 65.87%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Analog Devices Inc.’s gross profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Operating Profit Margin

Analog Devices Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016 Oct 31, 2015
Selected Financial Data (US$ in thousands)
Operating income 1,498,244  1,710,608  1,881,735  1,055,134  1,028,112  830,841 
Revenue 5,603,056  5,991,065  6,200,942  5,107,503  3,421,409  3,435,092 
Profitability Ratio
Operating profit margin1 26.74% 28.55% 30.35% 20.66% 30.05% 24.19%
Benchmarks
Operating Profit Margin, Competitors2
Advanced Micro Devices Inc. 14.02% 9.37% 6.97% 3.83% -8.71%
Apple Inc. 24.15% 24.57% 26.69% 26.76% 27.84% 30.48%
Applied Materials Inc. 25.37% 22.93% 27.80% 26.61% 19.88% 17.53%
Broadcom Inc. 16.80% 15.24% 24.63% 13.51% -3.09% 23.92%
Cisco Systems Inc. 27.63% 27.39% 24.95% 24.94% 25.71% 21.91%
Intel Corp. 30.41% 30.62% 32.91% 28.58% 21.68%
Lam Research Corp. 26.62% 25.53% 29.01% 23.74% 18.25% 14.98%
Micron Technology Inc. 14.01% 31.51% 49.34% 28.88% 1.35% 18.52%
NVIDIA Corp. 26.07% 32.47% 33.05% 27.99% 14.91% 16.21%
Qualcomm Inc. 26.58% 31.59% 3.26% 11.73% 27.57% 22.85%
Texas Instruments Inc. 40.76% 39.79% 42.53% 40.66% 35.89%
Operating Profit Margin, Sector
Technology Hardware & Equipment 26.35% 28.06% 25.74% 24.32%
Operating Profit Margin, Industry
Technology 25.96% 27.06% 25.45% 24.51%

Based on: 10-K (filing date: 2020-11-24), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-27), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-22), 10-K (filing date: 2015-11-24).

1 2020 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 1,498,244 ÷ 5,603,056 = 26.74%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Analog Devices Inc.’s operating profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Net Profit Margin

Analog Devices Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016 Oct 31, 2015
Selected Financial Data (US$ in thousands)
Net income 1,220,761  1,363,011  1,495,432  727,259  861,664  696,878 
Revenue 5,603,056  5,991,065  6,200,942  5,107,503  3,421,409  3,435,092 
Profitability Ratio
Net profit margin1 21.79% 22.75% 24.12% 14.24% 25.18% 20.29%
Benchmarks
Net Profit Margin, Competitors2
Advanced Micro Devices Inc. 25.50% 5.07% 5.20% 0.81% -11.63%
Apple Inc. 20.91% 21.24% 22.41% 21.09% 21.19% 22.85%
Applied Materials Inc. 21.04% 18.52% 19.20% 23.62% 15.90% 14.26%
Broadcom Inc. 12.39% 12.05% 58.80% 9.59% -13.13% 19.99%
Cisco Systems Inc. 22.75% 22.39% 0.22% 20.02% 21.81% 18.27%
Intel Corp. 26.84% 29.25% 29.72% 15.30% 17.37%
Lam Research Corp. 22.42% 22.70% 21.49% 21.19% 15.53% 12.47%
Micron Technology Inc. 12.54% 26.97% 46.51% 25.04% -2.23% 17.90%
NVIDIA Corp. 25.61% 35.34% 31.37% 24.11% 12.26% 13.47%
Qualcomm Inc. 22.09% 18.07% -21.40% 11.06% 24.22% 20.85%
Texas Instruments Inc. 38.69% 34.88% 35.35% 24.61% 26.89%
Net Profit Margin, Sector
Technology Hardware & Equipment 22.63% 22.49% 19.35% 18.65%
Net Profit Margin, Industry
Technology 22.90% 20.81% 18.50% 19.30%

Based on: 10-K (filing date: 2020-11-24), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-27), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-22), 10-K (filing date: 2015-11-24).

1 2020 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 1,220,761 ÷ 5,603,056 = 21.79%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Analog Devices Inc.’s net profit margin ratio deteriorated from 2018 to 2019 and from 2019 to 2020.

Return on Equity (ROE)

Analog Devices Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016 Oct 31, 2015
Selected Financial Data (US$ in thousands)
Net income 1,220,761  1,363,011  1,495,432  727,259  861,664  696,878 
Shareholders’ equity 11,997,945  11,709,188  10,988,540  10,161,540  5,165,618  5,072,959 
Profitability Ratio
ROE1 10.17% 11.64% 13.61% 7.16% 16.68% 13.74%
Benchmarks
ROE, Competitors2
Advanced Micro Devices Inc. 42.66% 12.06% 26.62% 7.04% -119.47%
Apple Inc. 87.87% 61.06% 55.56% 36.07% 35.62% 44.74%
Applied Materials Inc. 34.21% 32.94% 48.44% 36.73% 23.85% 18.09%
Broadcom Inc. 12.40% 10.92% 45.99% 8.34% -9.20% 28.94%
Cisco Systems Inc. 29.57% 34.62% 0.25% 14.53% 16.89% 15.04%
Intel Corp. 25.79% 27.16% 28.24% 13.91% 15.58%
Lam Research Corp. 43.53% 46.89% 36.62% 24.90% 15.51% 12.85%
Micron Technology Inc. 6.89% 17.59% 43.77% 27.33% -2.28% 23.57%
NVIDIA Corp. 22.91% 44.33% 40.78% 28.91% 13.74% 14.27%
Qualcomm Inc. 85.54% 89.35% -524.14% 8.02% 17.95% 16.78%
Texas Instruments Inc. 60.90% 56.33% 62.04% 35.62% 34.33%
ROE, Sector
Technology Hardware & Equipment 37.42% 36.22% 23.06% 21.90%
ROE, Industry
Technology 29.77% 26.95% 20.11% 20.72%

Based on: 10-K (filing date: 2020-11-24), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-27), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-22), 10-K (filing date: 2015-11-24).

1 2020 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 1,220,761 ÷ 11,997,945 = 10.17%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Analog Devices Inc.’s ROE deteriorated from 2018 to 2019 and from 2019 to 2020.

Return on Assets (ROA)

Analog Devices Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016 Oct 31, 2015
Selected Financial Data (US$ in thousands)
Net income 1,220,761  1,363,011  1,495,432  727,259  861,664  696,878 
Total assets 21,468,603  21,392,641  20,449,779  21,141,294  7,970,278  7,062,178 
Profitability Ratio
ROA1 5.69% 6.37% 7.31% 3.44% 10.81% 9.87%
Benchmarks
ROA, Competitors2
Advanced Micro Devices Inc. 27.78% 5.66% 7.40% 1.21% -14.97%
Apple Inc. 17.73% 16.32% 16.28% 12.88% 14.20% 18.38%
Applied Materials Inc. 16.19% 14.22% 18.64% 17.68% 11.80% 9.00%
Broadcom Inc. 3.90% 4.04% 24.46% 3.11% -3.48% 12.88%
Cisco Systems Inc. 11.82% 11.88% 0.10% 7.40% 8.83% 7.91%
Intel Corp. 13.65% 15.42% 16.45% 7.79% 9.10%
Lam Research Corp. 15.47% 18.26% 19.08% 14.00% 7.45% 7.00%
Micron Technology Inc. 5.01% 12.91% 32.59% 14.40% -1.00% 12.01%
NVIDIA Corp. 16.15% 31.15% 27.11% 16.93% 8.33% 8.76%
Qualcomm Inc. 14.60% 13.31% -14.88% 3.77% 10.90% 10.38%
Texas Instruments Inc. 28.91% 27.84% 32.56% 20.87% 21.88%
ROA, Sector
Technology Hardware & Equipment 14.42% 14.57% 10.15% 10.37%
ROA, Industry
Technology 12.84% 11.88% 9.15% 10.14%

Based on: 10-K (filing date: 2020-11-24), 10-K (filing date: 2019-11-26), 10-K (filing date: 2018-11-27), 10-K (filing date: 2017-11-22), 10-K (filing date: 2016-11-22), 10-K (filing date: 2015-11-24).

1 2020 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,220,761 ÷ 21,468,603 = 5.69%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Analog Devices Inc.’s ROA deteriorated from 2018 to 2019 and from 2019 to 2020.