Stock Analysis on Net

Analog Devices Inc. (NASDAQ:ADI)

Analysis of Goodwill and Intangible Assets

Microsoft Excel

Goodwill and Intangible Asset Disclosure

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

US$ in thousands

Microsoft Excel
Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
Goodwill 26,909,775 26,913,134 26,913,134 26,918,470 12,278,425 12,256,880
Customer relationships 10,335,903 10,335,903 10,335,903 10,336,477 4,700,454 4,696,562
Technology-based 7,597,471 7,589,027 7,555,708 7,559,503 1,136,742 1,145,283
Trade-name 72,200 72,200 72,200 72,200 72,200 73,417
Backlog 361,200 361,200 361,200
Assembled workforce 1,800 1,800 1,800 1,800
IPR&D 28,222 28,222
Intangible assets, gross carrying amount 18,007,374 18,360,130 18,355,033 18,359,402 5,909,396 5,915,262
Accumulated amortization (8,421,910) (7,048,173) (5,089,627) (3,092,232) (2,259,116) (1,698,038)
Intangible assets 9,585,464 11,311,957 13,265,406 15,267,170 3,650,280 4,217,224
Goodwill and intangible assets 36,495,239 38,225,091 40,178,540 42,185,640 15,928,705 16,474,104

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).

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 2022 to 2023 and from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.

Adjustments to Financial Statements: Removal of Goodwill

Analog Devices Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
Adjustment to Total Assets
Total assets (as reported) 48,228,277 48,794,478 50,302,350 52,322,071 21,468,603 21,392,641
Less: Goodwill 26,909,775 26,913,134 26,913,134 26,918,470 12,278,425 12,256,880
Total assets (adjusted) 21,318,502 21,881,344 23,389,216 25,403,601 9,190,178 9,135,761
Adjustment to Shareholders’ Equity
Shareholders’ equity (as reported) 35,176,317 35,565,122 36,465,323 37,992,542 11,997,945 11,709,188
Less: Goodwill 26,909,775 26,913,134 26,913,134 26,918,470 12,278,425 12,256,880
Shareholders’ equity (adjusted) 8,266,542 8,651,988 9,552,189 11,074,072 (280,480) (547,692)

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).


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


Adjusted Financial Ratios: Removal of Goodwill (Summary)

Analog Devices Inc., adjusted financial ratios

Microsoft Excel
Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
Total Asset Turnover
Reported total asset turnover 0.20 0.25 0.24 0.14 0.26 0.28
Adjusted total asset turnover 0.44 0.56 0.51 0.29 0.61 0.66
Financial Leverage
Reported financial leverage 1.37 1.37 1.38 1.38 1.79 1.83
Adjusted financial leverage 2.58 2.53 2.45 2.29
Return on Equity (ROE)
Reported ROE 4.65% 9.32% 7.54% 3.66% 10.17% 11.64%
Adjusted ROE 19.78% 38.31% 28.77% 12.56%
Return on Assets (ROA)
Reported ROA 3.39% 6.79% 5.46% 2.66% 5.69% 6.37%
Adjusted ROA 7.67% 15.15% 11.75% 5.47% 13.28% 14.92%

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).

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 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
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 2022 to 2023 and from 2023 to 2024.
Adjusted ROE A profitability ratio calculated as net income divided by adjusted shareholders’ equity. Analog Devices Inc. adjusted ROE improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted ROA A profitability ratio calculated as net income divided by adjusted total assets. Analog Devices Inc. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

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


Adjusted Total Asset Turnover

Microsoft Excel
Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenue 9,427,157 12,305,539 12,013,953 7,318,286 5,603,056 5,991,065
Total assets 48,228,277 48,794,478 50,302,350 52,322,071 21,468,603 21,392,641
Activity Ratio
Total asset turnover1 0.20 0.25 0.24 0.14 0.26 0.28
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenue 9,427,157 12,305,539 12,013,953 7,318,286 5,603,056 5,991,065
Adjusted total assets 21,318,502 21,881,344 23,389,216 25,403,601 9,190,178 9,135,761
Activity Ratio
Adjusted total asset turnover2 0.44 0.56 0.51 0.29 0.61 0.66

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).

2024 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 9,427,157 ÷ 48,228,277 = 0.20

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 9,427,157 ÷ 21,318,502 = 0.44

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 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Financial Leverage

Microsoft Excel
Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets 48,228,277 48,794,478 50,302,350 52,322,071 21,468,603 21,392,641
Shareholders’ equity 35,176,317 35,565,122 36,465,323 37,992,542 11,997,945 11,709,188
Solvency Ratio
Financial leverage1 1.37 1.37 1.38 1.38 1.79 1.83
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets 21,318,502 21,881,344 23,389,216 25,403,601 9,190,178 9,135,761
Adjusted shareholders’ equity 8,266,542 8,651,988 9,552,189 11,074,072 (280,480) (547,692)
Solvency Ratio
Adjusted financial leverage2 2.58 2.53 2.45 2.29

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).

2024 Calculations

1 Financial leverage = Total assets ÷ Shareholders’ equity
= 48,228,277 ÷ 35,176,317 = 1.37

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted shareholders’ equity
= 21,318,502 ÷ 8,266,542 = 2.58

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 2022 to 2023 and from 2023 to 2024.

Adjusted Return on Equity (ROE)

Microsoft Excel
Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income 1,635,273 3,314,579 2,748,561 1,390,422 1,220,761 1,363,011
Shareholders’ equity 35,176,317 35,565,122 36,465,323 37,992,542 11,997,945 11,709,188
Profitability Ratio
ROE1 4.65% 9.32% 7.54% 3.66% 10.17% 11.64%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income 1,635,273 3,314,579 2,748,561 1,390,422 1,220,761 1,363,011
Adjusted shareholders’ equity 8,266,542 8,651,988 9,552,189 11,074,072 (280,480) (547,692)
Profitability Ratio
Adjusted ROE2 19.78% 38.31% 28.77% 12.56%

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).

2024 Calculations

1 ROE = 100 × Net income ÷ Shareholders’ equity
= 100 × 1,635,273 ÷ 35,176,317 = 4.65%

2 Adjusted ROE = 100 × Net income ÷ Adjusted shareholders’ equity
= 100 × 1,635,273 ÷ 8,266,542 = 19.78%

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 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Adjusted Return on Assets (ROA)

Microsoft Excel
Nov 2, 2024 Oct 28, 2023 Oct 29, 2022 Oct 30, 2021 Oct 31, 2020 Nov 2, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income 1,635,273 3,314,579 2,748,561 1,390,422 1,220,761 1,363,011
Total assets 48,228,277 48,794,478 50,302,350 52,322,071 21,468,603 21,392,641
Profitability Ratio
ROA1 3.39% 6.79% 5.46% 2.66% 5.69% 6.37%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income 1,635,273 3,314,579 2,748,561 1,390,422 1,220,761 1,363,011
Adjusted total assets 21,318,502 21,881,344 23,389,216 25,403,601 9,190,178 9,135,761
Profitability Ratio
Adjusted ROA2 7.67% 15.15% 11.75% 5.47% 13.28% 14.92%

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).

2024 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 1,635,273 ÷ 48,228,277 = 3.39%

2 Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 1,635,273 ÷ 21,318,502 = 7.67%

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 2022 to 2023 but then deteriorated significantly from 2023 to 2024.