Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Analog Devices Inc., ROIC calculation, comparison to benchmarks
| 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 operating profit after taxes (NOPAT)1 | 3,141,095) | 2,594,637) | 1,115,726) | 1,265,150) | 1,510,496) | 927,190) | |
| Invested capital2 | 44,182,132) | 45,019,927) | 47,018,398) | 18,211,243) | 18,347,668) | 18,624,001) | |
| Performance Ratio | |||||||
| ROIC3 | 7.11% | 5.76% | 2.37% | 6.95% | 8.23% | 4.98% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Advanced Micro Devices Inc. | -0.35% | -0.24% | 56.77% | 30.47% | 12.00% | — | |
| Applied Materials Inc. | 36.75% | 46.34% | 41.96% | 29.68% | 28.97% | 36.36% | |
| Broadcom Inc. | 23.04% | 20.76% | 11.02% | 4.80% | 5.00% | 10.03% | |
| First Solar Inc. | 19.67% | 16.36% | 9.98% | 4.19% | -1.93% | — | |
| Intel Corp. | -1.60% | 4.14% | 22.03% | 28.01% | 26.78% | — | |
| KLA Corp. | 40.63% | 42.51% | 31.64% | 19.88% | 20.98% | — | |
| Lam Research Corp. | 27.10% | 41.68% | 37.13% | 20.36% | 16.31% | — | |
| Micron Technology Inc. | -11.01% | 17.20% | 12.88% | 6.84% | 17.15% | — | |
| NVIDIA Corp. | 10.91% | 53.12% | 33.44% | 19.63% | 80.01% | — | |
| Qualcomm Inc. | 18.69% | 45.12% | 42.56% | 27.48% | 28.27% | — | |
| Texas Instruments Inc. | 28.83% | 49.74% | 48.28% | 43.48% | 43.15% | — | |
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 NOPAT. See details »
2 Invested capital. See details »
3 2023 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 3,141,095 ÷ 44,182,132 = 7.11%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Analog Devices Inc. ROIC improved from 2021 to 2022 and from 2022 to 2023. |
Decomposition of ROIC
Analog Devices Inc., decomposition of ROIC
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 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the increase in return on invested capital (ROIC) over 2023 year is the increase in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Analog Devices Inc., OPM calculation, comparison to benchmarks
| 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 operating profit after taxes (NOPAT)1 | 3,141,095) | 2,594,637) | 1,115,726) | 1,265,150) | 1,510,496) | 927,190) | |
| Add: Cash operating taxes2 | 796,489) | 720,287) | 385,893) | 246,632) | 262,714) | 939,609) | |
| Net operating profit before taxes (NOPBT) | 3,937,584) | 3,314,924) | 1,501,618) | 1,511,782) | 1,773,209) | 1,866,799) | |
| Revenue | 12,305,539) | 12,013,953) | 7,318,286) | 5,603,056) | 5,991,065) | 6,200,942) | |
| Profitability Ratio | |||||||
| OPM3 | 32.00% | 27.59% | 20.52% | 26.98% | 29.60% | 30.11% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Advanced Micro Devices Inc. | 2.02% | 5.31% | 22.70% | 13.87% | 6.93% | — | |
| Applied Materials Inc. | 29.22% | 30.32% | 30.54% | 25.67% | 23.94% | 28.65% | |
| Broadcom Inc. | 45.19% | 42.94% | 31.06% | 17.10% | 15.65% | 24.22% | |
| First Solar Inc. | 38.84% | 24.98% | 19.78% | 3.73% | -1.57% | — | |
| Intel Corp. | -0.86% | 13.58% | 28.05% | 32.68% | 33.46% | — | |
| KLA Corp. | 39.78% | 41.73% | 36.39% | 26.09% | 32.80% | — | |
| Lam Research Corp. | 28.38% | 35.59% | 34.25% | 27.26% | 20.46% | — | |
| Micron Technology Inc. | -36.77% | 31.50% | 23.15% | 14.37% | 29.89% | — | |
| NVIDIA Corp. | 15.97% | 37.99% | 28.45% | 26.65% | 33.15% | — | |
| Qualcomm Inc. | 21.48% | 35.06% | 30.10% | 24.17% | 29.86% | — | |
| Texas Instruments Inc. | 44.51% | 51.22% | 49.60% | 43.13% | 40.81% | — | |
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
OPM = 100 × NOPBT ÷ Revenue
= 100 × 3,937,584 ÷ 12,305,539 = 32.00%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Analog Devices Inc. OPM improved from 2021 to 2022 and from 2022 to 2023. |
Turnover of Capital (TO)
Analog Devices Inc., TO calculation, comparison to benchmarks
| Oct 28, 2023 | Oct 29, 2022 | Oct 30, 2021 | Oct 31, 2020 | Nov 2, 2019 | Nov 3, 2018 | ||
|---|---|---|---|---|---|---|---|
| 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) | |
| Invested capital1 | 44,182,132) | 45,019,927) | 47,018,398) | 18,211,243) | 18,347,668) | 18,624,001) | |
| Efficiency Ratio | |||||||
| TO2 | 0.28 | 0.27 | 0.16 | 0.31 | 0.33 | 0.33 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Advanced Micro Devices Inc. | 0.39 | 0.40 | 2.65 | 2.24 | 1.98 | — | |
| Applied Materials Inc. | 1.49 | 1.73 | 1.57 | 1.31 | 1.44 | 1.69 | |
| Broadcom Inc. | 0.57 | 0.53 | 0.42 | 0.36 | 0.38 | 0.47 | |
| First Solar Inc. | 0.52 | 0.70 | 0.52 | 0.50 | 0.67 | — | |
| Intel Corp. | 0.59 | 0.71 | 0.89 | 0.95 | 0.89 | — | |
| KLA Corp. | 1.26 | 1.18 | 1.01 | 0.89 | 0.72 | — | |
| Lam Research Corp. | 1.14 | 1.35 | 1.24 | 0.86 | 0.93 | — | |
| Micron Technology Inc. | 0.29 | 0.58 | 0.60 | 0.51 | 0.60 | — | |
| NVIDIA Corp. | 1.26 | 1.49 | 1.28 | 0.77 | 2.45 | — | |
| Qualcomm Inc. | 1.14 | 1.50 | 1.66 | 1.33 | 1.13 | — | |
| Texas Instruments Inc. | 0.78 | 1.14 | 1.12 | 1.12 | 1.19 | — | |
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 Invested capital. See details »
2 2023 Calculation
TO = Revenue ÷ Invested capital
= 12,305,539 ÷ 44,182,132 = 0.28
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Analog Devices Inc. TO improved from 2021 to 2022 and from 2022 to 2023. |
Effective Cash Tax Rate (CTR)
Analog Devices Inc., CTR calculation, comparison to benchmarks
| 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 operating profit after taxes (NOPAT)1 | 3,141,095) | 2,594,637) | 1,115,726) | 1,265,150) | 1,510,496) | 927,190) | |
| Add: Cash operating taxes2 | 796,489) | 720,287) | 385,893) | 246,632) | 262,714) | 939,609) | |
| Net operating profit before taxes (NOPBT) | 3,937,584) | 3,314,924) | 1,501,618) | 1,511,782) | 1,773,209) | 1,866,799) | |
| Tax Rate | |||||||
| CTR3 | 20.23% | 21.73% | 25.70% | 16.31% | 14.82% | 50.33% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Advanced Micro Devices Inc. | 143.92% | 111.01% | 5.73% | 1.76% | 12.31% | — | |
| Applied Materials Inc. | 15.68% | 11.76% | 12.33% | 12.01% | 16.10% | 25.07% | |
| Broadcom Inc. | 10.78% | 9.59% | 16.44% | 22.63% | 15.10% | 11.38% | |
| First Solar Inc. | 3.53% | 6.23% | 3.90% | -125.42% | — | — | |
| Intel Corp. | — | 57.13% | 12.07% | 9.78% | 10.35% | — | |
| KLA Corp. | 18.86% | 13.88% | 14.30% | 14.62% | 10.70% | — | |
| Lam Research Corp. | 16.15% | 13.55% | 12.57% | 13.09% | 14.26% | — | |
| Micron Technology Inc. | — | 6.38% | 6.96% | 6.13% | 4.94% | — | |
| NVIDIA Corp. | 45.94% | 6.28% | 8.10% | 4.59% | 1.47% | — | |
| Qualcomm Inc. | 23.51% | 14.27% | 14.84% | 14.19% | 16.37% | — | |
| Texas Instruments Inc. | 16.49% | 14.83% | 12.93% | 9.63% | 11.38% | — | |
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 NOPAT. See details »
2 Cash operating taxes. See details »
3 2023 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 796,489 ÷ 3,937,584 = 20.23%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Analog Devices Inc. CTR decreased from 2021 to 2022 and from 2022 to 2023. |