Stock Analysis on Net

Analog Devices Inc. (NASDAQ:ADI)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

Analog Devices Inc., profitability ratios

Microsoft Excel
Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018
Return on Sales
Gross profit margin 64.01% 62.70% 61.83% 65.87% 67.00% 68.27%
Operating profit margin 31.07% 27.29% 23.12% 26.74% 28.55% 30.35%
Net profit margin 26.94% 22.88% 19.00% 21.79% 22.75% 24.12%
Return on Investment
Return on equity (ROE) 9.32% 7.54% 3.66% 10.17% 11.64% 13.61%
Return on assets (ROA) 6.79% 5.46% 2.66% 5.69% 6.37% 7.31%

Based on: 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), 10-K (reporting date: 2018-11-03).

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. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Analog Devices Inc. operating profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Analog Devices Inc. net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Analog Devices Inc. ROE improved from 2021 to 2022 and from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. Analog Devices Inc. ROA improved from 2021 to 2022 and from 2022 to 2023.

Gross Profit Margin

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

Microsoft Excel
Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018
Selected Financial Data (US$ in thousands)
Gross margin 7,877,218 7,532,474 4,525,012 3,690,478 4,013,750 4,233,302
Revenue 12,305,539 12,013,953 7,318,286 5,603,056 5,991,065 6,200,942
Profitability Ratio
Gross profit margin1 64.01% 62.70% 61.83% 65.87% 67.00% 68.27%
Benchmarks
Gross Profit Margin, Competitors2
Advanced Micro Devices Inc. 46.12% 44.93% 48.25% 44.53% 42.61%
Applied Materials Inc. 46.70% 46.51% 47.32% 44.72% 43.72% 45.31%
Broadcom Inc. 68.93% 66.55% 61.36% 56.58% 55.24% 51.48%
Enphase Energy Inc. 46.20% 41.81% 40.12% 44.68% 35.44%
Intel Corp. 40.04% 42.61% 55.45% 56.01% 58.56%
KLA Corp. 59.81% 61.00% 59.93% 57.81% 59.08% 64.14%
Lam Research Corp. 44.62% 45.69% 46.53% 45.88% 45.15% 46.63%
Micron Technology Inc. -9.11% 45.18% 37.62% 30.57% 45.72% 58.87%
NVIDIA Corp. 56.93% 64.93% 62.34% 61.99% 61.21%
ON Semiconductor Corp. 47.06% 48.97% 40.27% 32.65% 35.77%
Qualcomm Inc. 55.70% 57.84% 57.51% 60.67% 64.57% 54.94%
Texas Instruments Inc. 62.90% 68.76% 67.47% 64.10% 63.71%

Based on: 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), 10-K (reporting date: 2018-11-03).

1 2023 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenue
= 100 × 7,877,218 ÷ 12,305,539 = 64.01%

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. gross profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Operating Profit Margin

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

Microsoft Excel
Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018
Selected Financial Data (US$ in thousands)
Operating income 3,823,112 3,278,700 1,692,201 1,498,244 1,710,608 1,881,735
Revenue 12,305,539 12,013,953 7,318,286 5,603,056 5,991,065 6,200,942
Profitability Ratio
Operating profit margin1 31.07% 27.29% 23.12% 26.74% 28.55% 30.35%
Benchmarks
Operating Profit Margin, Competitors2
Advanced Micro Devices Inc. 1.77% 5.36% 22.20% 14.02% 9.37%
Applied Materials Inc. 28.86% 30.20% 29.87% 25.37% 22.93% 27.80%
Broadcom Inc. 45.25% 42.84% 31.03% 16.80% 15.24% 24.63%
Enphase Energy Inc. 19.46% 19.23% 15.62% 24.07% 16.45%
Intel Corp. 0.17% 3.70% 24.62% 30.41% 30.62%
KLA Corp. 38.06% 39.67% 35.97% 25.87% 30.41% 38.08%
Lam Research Corp. 29.69% 31.24% 30.64% 26.62% 25.53% 29.01%
Micron Technology Inc. -36.97% 31.54% 22.68% 14.01% 31.51% 49.34%
NVIDIA Corp. 15.66% 37.31% 27.18% 26.07% 32.47%
ON Semiconductor Corp. 30.76% 28.34% 19.10% 6.64% 7.84%
Qualcomm Inc. 21.74% 35.88% 29.16% 26.58% 31.59% 3.26%
Texas Instruments Inc. 41.85% 50.63% 48.84% 40.76% 39.79%
Operating Profit Margin, Sector
Semiconductors & Semiconductor Equipment 18.87% 27.31% 28.02% 25.44% 27.83%
Operating Profit Margin, Industry
Information Technology 26.31% 28.45% 28.75% 24.95% 25.41%

Based on: 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), 10-K (reporting date: 2018-11-03).

1 2023 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 3,823,112 ÷ 12,305,539 = 31.07%

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. operating profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Net Profit Margin

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

Microsoft Excel
Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018
Selected Financial Data (US$ in thousands)
Net income 3,314,579 2,748,561 1,390,422 1,220,761 1,363,011 1,495,432
Revenue 12,305,539 12,013,953 7,318,286 5,603,056 5,991,065 6,200,942
Profitability Ratio
Net profit margin1 26.94% 22.88% 19.00% 21.79% 22.75% 24.12%
Benchmarks
Net Profit Margin, Competitors2
Advanced Micro Devices Inc. 3.77% 5.59% 19.24% 25.50% 5.07%
Applied Materials Inc. 25.86% 25.31% 25.53% 21.04% 18.52% 19.20%
Broadcom Inc. 39.31% 34.62% 24.54% 12.39% 12.05% 58.80%
Enphase Energy Inc. 19.16% 17.05% 10.52% 17.30% 25.81%
Intel Corp. 3.11% 12.71% 25.14% 26.84% 29.25%
KLA Corp. 32.27% 36.06% 30.04% 20.96% 25.73% 19.87%
Lam Research Corp. 25.88% 26.73% 26.72% 22.42% 22.70% 21.49%
Micron Technology Inc. -37.54% 28.24% 21.16% 12.54% 26.97% 46.51%
NVIDIA Corp. 16.19% 36.23% 25.98% 25.61% 35.34%
ON Semiconductor Corp. 26.46% 22.85% 14.98% 4.46% 3.84%
Qualcomm Inc. 20.19% 29.27% 26.94% 22.09% 18.07% -21.40%
Texas Instruments Inc. 37.16% 43.68% 42.35% 38.69% 34.88%
Net Profit Margin, Sector
Semiconductors & Semiconductor Equipment 17.35% 25.41% 25.49% 22.64% 23.97%
Net Profit Margin, Industry
Information Technology 22.13% 24.06% 25.54% 21.37% 22.17%

Based on: 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), 10-K (reporting date: 2018-11-03).

1 2023 Calculation
Net profit margin = 100 × Net income ÷ Revenue
= 100 × 3,314,579 ÷ 12,305,539 = 26.94%

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. net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Return on Equity (ROE)

Analog Devices Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018
Selected Financial Data (US$ in thousands)
Net income 3,314,579 2,748,561 1,390,422 1,220,761 1,363,011 1,495,432
Shareholders’ equity 35,565,122 36,465,323 37,992,542 11,997,945 11,709,188 10,988,540
Profitability Ratio
ROE1 9.32% 7.54% 3.66% 10.17% 11.64% 13.61%
Benchmarks
ROE, Competitors2
Advanced Micro Devices Inc. 1.53% 2.41% 42.18% 42.66% 12.06%
Applied Materials Inc. 41.94% 53.51% 48.08% 34.21% 32.94% 48.44%
Broadcom Inc. 58.70% 50.62% 26.99% 12.40% 10.92% 45.99%
Enphase Energy Inc. 44.62% 48.13% 33.81% 27.69% 59.20%
Intel Corp. 1.60% 7.90% 20.83% 25.79% 27.16%
KLA Corp. 116.01% 237.04% 61.53% 45.65% 44.21% 49.51%
Lam Research Corp. 54.94% 73.35% 64.85% 43.53% 46.89% 36.62%
Micron Technology Inc. -13.22% 17.41% 13.34% 6.89% 17.59% 43.77%
NVIDIA Corp. 19.76% 36.65% 25.64% 22.91% 44.33%
ON Semiconductor Corp. 28.06% 30.74% 22.02% 6.62% 6.41%
Qualcomm Inc. 33.51% 71.81% 90.88% 85.54% 89.35% -524.14%
Texas Instruments Inc. 38.53% 60.02% 58.27% 60.90% 56.33%
ROE, Sector
Semiconductors & Semiconductor Equipment 13.70% 22.90% 25.74% 24.24% 26.53%
ROE, Industry
Information Technology 31.94% 38.70% 42.55% 35.28% 36.69%

Based on: 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), 10-K (reporting date: 2018-11-03).

1 2023 Calculation
ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 3,314,579 ÷ 35,565,122 = 9.32%

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. ROE improved from 2021 to 2022 and from 2022 to 2023.

Return on Assets (ROA)

Analog Devices Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018
Selected Financial Data (US$ in thousands)
Net income 3,314,579 2,748,561 1,390,422 1,220,761 1,363,011 1,495,432
Total assets 48,794,478 50,302,350 52,322,071 21,468,603 21,392,641 20,449,779
Profitability Ratio
ROA1 6.79% 5.46% 2.66% 5.69% 6.37% 7.31%
Benchmarks
ROA, Competitors2
Advanced Micro Devices Inc. 1.26% 1.95% 25.46% 27.78% 5.66%
Applied Materials Inc. 22.31% 24.41% 22.80% 16.19% 14.22% 18.64%
Broadcom Inc. 19.33% 15.69% 8.91% 3.90% 4.04% 24.46%
Enphase Energy Inc. 12.97% 12.88% 7.00% 11.17% 22.59%
Intel Corp. 0.88% 4.40% 11.80% 13.65% 15.42%
KLA Corp. 24.07% 26.37% 20.23% 13.11% 13.05% 14.28%
Lam Research Corp. 24.02% 26.78% 24.59% 15.47% 18.26% 19.08%
Micron Technology Inc. -9.08% 13.11% 9.96% 5.01% 12.91% 32.59%
NVIDIA Corp. 10.61% 22.07% 15.05% 16.15% 31.15%
ON Semiconductor Corp. 16.52% 15.88% 10.49% 2.70% 2.51%
Qualcomm Inc. 14.17% 26.39% 21.93% 14.60% 13.31% -14.88%
Texas Instruments Inc. 20.12% 32.16% 31.48% 28.91% 27.84%
ROA, Sector
Semiconductors & Semiconductor Equipment 7.63% 12.74% 13.54% 11.62% 13.15%
ROA, Industry
Information Technology 13.10% 15.14% 15.64% 12.15% 12.81%

Based on: 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), 10-K (reporting date: 2018-11-03).

1 2023 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 3,314,579 ÷ 48,794,478 = 6.79%

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. ROA improved from 2021 to 2022 and from 2022 to 2023.