Stock Analysis on Net

Analog Devices Inc. (NASDAQ:ADI)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Analog Devices Inc., short-term (operating) activity ratios

Microsoft Excel
Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016
Turnover Ratios
Inventory turnover 2.33 3.14 3.24 3.35 3.71 3.17
Receivables turnover 5.02 7.60 9.43 9.69 7.41 7.16
Payables turnover 6.30 8.42 8.78 7.54 8.65 6.97
Working capital turnover 2.81 4.86 12.57 8.78 6.76 0.82
Average No. Days
Average inventory processing period 157 116 113 109 98 115
Add: Average receivable collection period 73 48 39 38 49 51
Operating cycle 230 164 152 147 147 166
Less: Average payables payment period 58 43 42 48 42 52
Cash conversion cycle 172 121 110 99 105 114

Based on: 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), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Analog Devices Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Receivables turnover An activity ratio equal to revenue divided by receivables. Analog Devices Inc. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Analog Devices Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Analog Devices Inc. working capital turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Analog Devices Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Analog Devices Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Analog Devices Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Analog Devices Inc. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Analog Devices Inc. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021.

Inventory Turnover

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

Microsoft Excel
Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016
Selected Financial Data (US$ in thousands)
Cost of sales 2,793,274  1,912,578  1,977,315  1,967,640  2,045,907  1,194,236 
Inventories 1,200,610  608,260  609,886  586,760  550,816  376,555 
Short-term Activity Ratio
Inventory turnover1 2.33 3.14 3.24 3.35 3.71 3.17
Benchmarks
Inventory Turnover, Competitors2
Advanced Micro Devices Inc. 4.35 3.87 3.93 4.77 4.74
Applied Materials Inc. 2.82 2.44 2.37 2.54 2.73 3.08
Broadcom Inc. 8.18 10.34 11.57 9.00 6.31 5.21
First Solar Inc. 3.29 3.58 5.67 4.77 13.88
Intel Corp. 3.27 4.06 3.41 3.74 3.39
KLA Corp. 1.76 1.87 1.48 1.55 1.76
Lam Research Corp. 2.91 2.86 3.44 3.15 3.58
Micron Technology Inc. 3.85 2.65 2.48 3.48 3.81 3.42
NVIDIA Corp. 3.44 4.24 2.89 4.89 3.59
ON Semiconductor Corp. 2.92 2.83 2.88 2.97 3.22
Qualcomm Inc. 4.42 3.56 6.14 6.05 4.81 6.27
Texas Instruments Inc. 3.12 2.66 2.61 2.48 2.73
Inventory Turnover, Sector
Semiconductors & Semiconductor Equipment 3.48 3.44 3.36 3.72 3.69
Inventory Turnover, Industry
Information Technology 11.22 11.88 12.01 12.36 11.81

Based on: 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), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29).

1 2021 Calculation
Inventory turnover = Cost of sales ÷ Inventories
= 2,793,274 ÷ 1,200,610 = 2.33

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Analog Devices Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Receivables Turnover

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

Microsoft Excel
Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016
Selected Financial Data (US$ in thousands)
Revenue 7,318,286  5,603,056  5,991,065  6,200,942  5,107,503  3,421,409 
Accounts receivable less allowances 1,459,056  737,536  635,136  639,717  688,953  477,609 
Short-term Activity Ratio
Receivables turnover1 5.02 7.60 9.43 9.69 7.41 7.16
Benchmarks
Receivables Turnover, Competitors2
Advanced Micro Devices Inc. 6.07 4.73 3.62 5.24 13.32
Applied Materials Inc. 4.66 5.81 5.77 6.73 6.22 4.75
Broadcom Inc. 13.25 10.40 6.93 6.27 7.20 6.07
First Solar Inc. 6.81 10.19 6.45 17.49 13.89
Intel Corp. 8.36 11.48 9.40 10.54 11.19
KLA Corp. 5.30 5.24 4.61 6.19 6.09
Lam Research Corp. 4.83 4.79 6.63 5.09 4.79
Micron Technology Inc. 5.63 6.13 8.43 6.01 5.82 7.02
NVIDIA Corp. 6.86 6.59 8.23 7.68 8.37
ON Semiconductor Corp. 8.33 7.77 7.83 8.57 7.90
Qualcomm Inc. 15.16 8.76 23.21 7.98 6.23 10.74
Texas Instruments Inc. 10.78 10.23 13.39 13.08 11.71
Receivables Turnover, Sector
Semiconductors & Semiconductor Equipment 7.49 8.09 8.44 7.84 7.97
Receivables Turnover, Industry
Information Technology 7.87 8.35 7.69 7.96 8.32

Based on: 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), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29).

1 2021 Calculation
Receivables turnover = Revenue ÷ Accounts receivable less allowances
= 7,318,286 ÷ 1,459,056 = 5.02

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Analog Devices Inc. receivables turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Payables Turnover

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

Microsoft Excel
Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016
Selected Financial Data (US$ in thousands)
Cost of sales 2,793,274  1,912,578  1,977,315  1,967,640  2,045,907  1,194,236 
Accounts payable 443,434  227,273  225,270  260,919  236,629  171,439 
Short-term Activity Ratio
Payables turnover1 6.30 8.42 8.78 7.54 8.65 6.97
Benchmarks
Payables Turnover, Competitors2
Advanced Micro Devices Inc. 6.44 11.57 3.91 7.63 9.13
Applied Materials Inc. 8.25 8.46 8.58 9.47 8.47 7.77
Broadcom Inc. 9.77 12.41 11.83 12.47 8.26 5.79
First Solar Inc. 11.34 11.08 11.53 7.94 19.90
Intel Corp. 6.13 6.14 7.23 7.09 8.09
KLA Corp. 8.10 9.27 9.24 8.55 8.74
Lam Research Corp. 9.43 9.18 14.06 11.57 9.49
Micron Technology Inc. 9.91 6.79 7.58 7.39 8.92 8.34
NVIDIA Corp. 5.23 6.04 8.89 6.53 5.87
ON Semiconductor Corp. 6.34 6.18 6.52 5.42 6.40
Qualcomm Inc. 5.19 4.12 6.29 5.61 4.97 5.25
Texas Instruments Inc. 9.14 12.51 13.45 11.52 11.47
Payables Turnover, Sector
Semiconductors & Semiconductor Equipment 7.05 7.04 7.90 7.75 7.89
Payables Turnover, Industry
Information Technology 5.47 5.81 5.50 4.92 4.98

Based on: 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), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29).

1 2021 Calculation
Payables turnover = Cost of sales ÷ Accounts payable
= 2,793,274 ÷ 443,434 = 6.30

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Analog Devices Inc. payables turnover ratio decreased from 2019 to 2020 and from 2020 to 2021.

Working Capital Turnover

Analog Devices Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016
Selected Financial Data (US$ in thousands)
Current assets 5,378,317  2,517,688  1,985,126  2,112,126  2,351,338  4,974,863 
Less: Current liabilities 2,770,312  1,364,986  1,508,632  1,406,138  1,596,332  782,934 
Working capital 2,608,005  1,152,702  476,494  705,988  755,006  4,191,929 
 
Revenue 7,318,286  5,603,056  5,991,065  6,200,942  5,107,503  3,421,409 
Short-term Activity Ratio
Working capital turnover1 2.81 4.86 12.57 8.78 6.76 0.82
Benchmarks
Working Capital Turnover, Competitors2
Advanced Micro Devices Inc. 3.78 2.62 3.01 4.16 4.69
Applied Materials Inc. 2.36 1.93 2.54 2.58 1.65 2.29
Broadcom Inc. 2.66 4.32 7.49 3.08 1.33 3.27
First Solar Inc. 1.19 1.25 1.34 0.74 0.92
Intel Corp. 2.61 3.46 8.06 5.83 5.20
KLA Corp. 1.93 1.92 1.79 1.21 1.12
Lam Research Corp. 1.80 1.31 1.56 1.85 1.29
Micron Technology Inc. 2.05 1.89 2.31 2.95 2.85 2.66
NVIDIA Corp. 1.37 0.92 1.27 1.20 1.02
ON Semiconductor Corp. 3.01 3.48 4.59 3.46 3.64
Qualcomm Inc. 4.13 2.39 3.10 3.70 0.68 1.50
Texas Instruments Inc. 1.65 1.84 2.17 2.81 2.31
Working Capital Turnover, Sector
Semiconductors & Semiconductor Equipment 2.37 2.35 3.29 3.10 1.84
Working Capital Turnover, Industry
Information Technology 3.75 2.77 3.01 2.76 2.08

Based on: 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), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29).

1 2021 Calculation
Working capital turnover = Revenue ÷ Working capital
= 7,318,286 ÷ 2,608,005 = 2.81

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Analog Devices Inc. working capital turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Average Inventory Processing Period

Analog Devices Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016
Selected Financial Data
Inventory turnover 2.33 3.14 3.24 3.35 3.71 3.17
Short-term Activity Ratio (no. days)
Average inventory processing period1 157 116 113 109 98 115
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Advanced Micro Devices Inc. 84 94 93 77 77
Applied Materials Inc. 129 150 154 144 134 119
Broadcom Inc. 45 35 32 41 58 70
First Solar Inc. 111 102 64 76 26
Intel Corp. 112 90 107 98 108
KLA Corp. 207 195 247 235 208
Lam Research Corp. 126 128 106 116 102
Micron Technology Inc. 95 138 147 105 96 107
NVIDIA Corp. 106 86 126 75 102
ON Semiconductor Corp. 125 129 127 123 113
Qualcomm Inc. 83 102 59 60 76 58
Texas Instruments Inc. 117 137 140 147 134
Average Inventory Processing Period, Sector
Semiconductors & Semiconductor Equipment 105 106 109 98 99
Average Inventory Processing Period, Industry
Information Technology 33 31 30 30 31

Based on: 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), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29).

1 2021 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.33 = 157

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Analog Devices Inc. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.

Average Receivable Collection Period

Analog Devices Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016
Selected Financial Data
Receivables turnover 5.02 7.60 9.43 9.69 7.41 7.16
Short-term Activity Ratio (no. days)
Average receivable collection period1 73 48 39 38 49 51
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Advanced Micro Devices Inc. 60 77 101 70 27
Applied Materials Inc. 78 63 63 54 59 77
Broadcom Inc. 28 35 53 58 51 60
First Solar Inc. 54 36 57 21 26
Intel Corp. 44 32 39 35 33
KLA Corp. 69 70 79 59 60
Lam Research Corp. 76 76 55 72 76
Micron Technology Inc. 65 59 43 61 63 52
NVIDIA Corp. 53 55 44 48 44
ON Semiconductor Corp. 44 47 47 43 46
Qualcomm Inc. 24 42 16 46 59 34
Texas Instruments Inc. 34 36 27 28 31
Average Receivable Collection Period, Sector
Semiconductors & Semiconductor Equipment 49 45 43 47 46
Average Receivable Collection Period, Industry
Information Technology 46 44 47 46 44

Based on: 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), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29).

1 2021 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 5.02 = 73

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Analog Devices Inc. number of days of receivables outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.

Operating Cycle

Analog Devices Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016
Selected Financial Data
Average inventory processing period 157 116 113 109 98 115
Average receivable collection period 73 48 39 38 49 51
Short-term Activity Ratio
Operating cycle1 230 164 152 147 147 166
Benchmarks
Operating Cycle, Competitors2
Advanced Micro Devices Inc. 144 171 194 147 104
Applied Materials Inc. 207 213 217 198 193 196
Broadcom Inc. 73 70 85 99 109 130
First Solar Inc. 165 138 121 97 52
Intel Corp. 156 122 146 133 141
KLA Corp. 276 265 326 294 268
Lam Research Corp. 202 204 161 188 178
Micron Technology Inc. 160 197 190 166 159 159
NVIDIA Corp. 159 141 170 123 146
ON Semiconductor Corp. 169 176 174 166 159
Qualcomm Inc. 107 144 75 106 135 92
Texas Instruments Inc. 151 173 167 175 165
Operating Cycle, Sector
Semiconductors & Semiconductor Equipment 154 151 152 145 145
Operating Cycle, Industry
Information Technology 79 75 77 76 75

Based on: 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), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29).

1 2021 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 157 + 73 = 230

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Analog Devices Inc. operating cycle deteriorated from 2019 to 2020 and from 2020 to 2021.

Average Payables Payment Period

Analog Devices Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016
Selected Financial Data
Payables turnover 6.30 8.42 8.78 7.54 8.65 6.97
Short-term Activity Ratio (no. days)
Average payables payment period1 58 43 42 48 42 52
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Advanced Micro Devices Inc. 57 32 93 48 40
Applied Materials Inc. 44 43 43 39 43 47
Broadcom Inc. 37 29 31 29 44 63
First Solar Inc. 32 33 32 46 18
Intel Corp. 60 59 51 51 45
KLA Corp. 45 39 40 43 42
Lam Research Corp. 39 40 26 32 38
Micron Technology Inc. 37 54 48 49 41 44
NVIDIA Corp. 70 60 41 56 62
ON Semiconductor Corp. 58 59 56 67 57
Qualcomm Inc. 70 89 58 65 73 70
Texas Instruments Inc. 40 29 27 32 32
Average Payables Payment Period, Sector
Semiconductors & Semiconductor Equipment 52 52 46 47 46
Average Payables Payment Period, Industry
Information Technology 67 63 66 74 73

Based on: 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), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29).

1 2021 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.30 = 58

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Analog Devices Inc. number of days of payables outstanding increased from 2019 to 2020 and from 2020 to 2021.

Cash Conversion Cycle

Analog Devices Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Oct 30, 2021 Oct 31, 2020 Nov 2, 2019 Nov 3, 2018 Oct 28, 2017 Oct 29, 2016
Selected Financial Data
Average inventory processing period 157 116 113 109 98 115
Average receivable collection period 73 48 39 38 49 51
Average payables payment period 58 43 42 48 42 52
Short-term Activity Ratio
Cash conversion cycle1 172 121 110 99 105 114
Benchmarks
Cash Conversion Cycle, Competitors2
Advanced Micro Devices Inc. 87 139 101 99 64
Applied Materials Inc. 163 170 174 159 150 149
Broadcom Inc. 36 41 54 70 65 67
First Solar Inc. 133 105 89 51 34
Intel Corp. 96 63 95 82 96
KLA Corp. 231 226 286 251 226
Lam Research Corp. 163 164 135 156 140
Micron Technology Inc. 123 143 142 117 118 115
NVIDIA Corp. 89 81 129 67 84
ON Semiconductor Corp. 111 117 118 99 102
Qualcomm Inc. 37 55 17 41 62 22
Texas Instruments Inc. 111 144 140 143 133
Cash Conversion Cycle, Sector
Semiconductors & Semiconductor Equipment 102 99 106 98 99
Cash Conversion Cycle, Industry
Information Technology 12 12 11 2 2

Based on: 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), 10-K (reporting date: 2017-10-28), 10-K (reporting date: 2016-10-29).

1 2021 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 157 + 7358 = 172

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Analog Devices Inc. cash conversion cycle deteriorated from 2019 to 2020 and from 2020 to 2021.