Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Analog Devices Inc., balance sheet: goodwill and intangible assets

US$ in thousands

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
Goodwill	26,913,134)	26,913,134)	26,918,470)	12,278,425)	12,256,880)	12,252,604)
Customer relationships	10,335,903)	10,335,903)	10,336,477)	4,700,454)	4,696,562)	4,697,716)
Technology-based	7,589,027)	7,555,708)	7,559,503)	1,136,742)	1,145,283)	1,114,080)
Trade-name	72,200)	72,200)	72,200)	72,200)	73,417)	74,031)
Backlog	361,200)	361,200)	361,200)	—)	—)	—)
Assembled workforce	1,800)	1,800)	1,800)	—)	—)	—)
IPR&D	—)	28,222)	28,222)	—)	—)	20,768)
Intangible assets, gross carrying amount	18,360,130)	18,355,033)	18,359,402)	5,909,396)	5,915,262)	5,906,595)
Accumulated amortization	(7,048,173)	(5,089,627)	(3,092,232)	(2,259,116)	(1,698,038)	(1,128,403)
Intangible assets	11,311,957)	13,265,406)	15,267,170)	3,650,280)	4,217,224)	4,778,192)
Goodwill and intangible assets	38,225,091)	40,178,540)	42,185,640)	15,928,705)	16,474,104)	17,030,796)

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).

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Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Analog Devices Inc. intangible assets decreased from 2021 to 2022 and from 2022 to 2023.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Analog Devices Inc. goodwill and intangible assets decreased from 2021 to 2022 and from 2022 to 2023.

Analog Devices Inc., adjustments to financial statements

US$ in thousands

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
Adjustment to Total Assets
Total assets (as reported)	48,794,478)	50,302,350)	52,322,071)	21,468,603)	21,392,641)	20,449,779)
Less: Goodwill	26,913,134)	26,913,134)	26,918,470)	12,278,425)	12,256,880)	12,252,604)
Total assets (adjusted)	21,881,344)	23,389,216)	25,403,601)	9,190,178)	9,135,761)	8,197,175)
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported)	35,565,122)	36,465,323)	37,992,542)	11,997,945)	11,709,188)	10,988,540)
Less: Goodwill	26,913,134)	26,913,134)	26,918,470)	12,278,425)	12,256,880)	12,252,604)
Shareholders’ equity (adjusted)	8,651,988)	9,552,189)	11,074,072)	(280,480)	(547,692)	(1,264,064)

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).

Analog Devices Inc., Financial Data: Reported vs. Adjusted

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Analog Devices Inc., adjusted financial ratios

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
Total Asset Turnover
Reported total asset turnover	0.25	0.24	0.14	0.26	0.28	0.30
Adjusted total asset turnover	0.56	0.51	0.29	0.61	0.66	0.76
Financial Leverage
Reported financial leverage	1.37	1.38	1.38	1.79	1.83	1.86
Adjusted financial leverage	2.53	2.45	2.29	—	—	—
Return on Equity (ROE)
Reported ROE	9.32%	7.54%	3.66%	10.17%	11.64%	13.61%
Adjusted ROE	38.31%	28.77%	12.56%	—	—	—
Return on Assets (ROA)
Reported ROA	6.79%	5.46%	2.66%	5.69%	6.37%	7.31%
Adjusted ROA	15.15%	11.75%	5.47%	13.28%	14.92%	18.24%

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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Analog Devices Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Analog Devices Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Analog Devices Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Analog Devices Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Analog Devices Inc., Financial Ratios: Reported vs. Adjusted

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	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Revenue	12,305,539)	12,013,953)	7,318,286)	5,603,056)	5,991,065)	6,200,942)
Total assets	48,794,478)	50,302,350)	52,322,071)	21,468,603)	21,392,641)	20,449,779)
Activity Ratio
Total asset turnover¹	0.25	0.24	0.14	0.26	0.28	0.30
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenue	12,305,539)	12,013,953)	7,318,286)	5,603,056)	5,991,065)	6,200,942)
Adjusted total assets	21,881,344)	23,389,216)	25,403,601)	9,190,178)	9,135,761)	8,197,175)
Activity Ratio
Adjusted total asset turnover²	0.56	0.51	0.29	0.61	0.66	0.76

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).

2023 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 12,305,539 ÷ 48,794,478 = 0.25

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 12,305,539 ÷ 21,881,344 = 0.56

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Analog Devices Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets	48,794,478)	50,302,350)	52,322,071)	21,468,603)	21,392,641)	20,449,779)
Shareholders’ equity	35,565,122)	36,465,323)	37,992,542)	11,997,945)	11,709,188)	10,988,540)
Solvency Ratio
Financial leverage¹	1.37	1.38	1.38	1.79	1.83	1.86
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	21,881,344)	23,389,216)	25,403,601)	9,190,178)	9,135,761)	8,197,175)
Adjusted shareholders’ equity	8,651,988)	9,552,189)	11,074,072)	(280,480)	(547,692)	(1,264,064)
Solvency Ratio
Adjusted financial leverage²	2.53	2.45	2.29	—	—	—

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).

2023 Calculations

¹ Financial leverage = Total assets ÷ Shareholders’ equity
= 48,794,478 ÷ 35,565,122 = 1.37

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 21,881,344 ÷ 8,651,988 = 2.53

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Analog Devices Inc. adjusted financial leverage ratio increased from 2021 to 2022 and from 2022 to 2023.

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
As Reported
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%
Adjusted for Goodwill
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)
Adjusted shareholders’ equity	8,651,988)	9,552,189)	11,074,072)	(280,480)	(547,692)	(1,264,064)
Profitability Ratio
Adjusted ROE²	38.31%	28.77%	12.56%	—	—	—

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).

2023 Calculations

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

² Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity
= 100 × 3,314,579 ÷ 8,651,988 = 38.31%

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

	Oct 28, 2023	Oct 29, 2022	Oct 30, 2021	Oct 31, 2020	Nov 2, 2019	Nov 3, 2018
As Reported
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%
Adjusted for Goodwill
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)
Adjusted total assets	21,881,344)	23,389,216)	25,403,601)	9,190,178)	9,135,761)	8,197,175)
Profitability Ratio
Adjusted ROA²	15.15%	11.75%	5.47%	13.28%	14.92%	18.24%

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).

2023 Calculations

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

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 3,314,579 ÷ 21,881,344 = 15.15%

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

Analog Devices Inc. (NASDAQ:ADI)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Analog Devices Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Analog Devices Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)