Stock Analysis on Net
Stock Analysis on Net

Analog Devices Inc. (NASDAQ:ADI)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin 
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Analog Devices Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Nov 2, 2024 4.65% = 3.39% × 1.37
Aug 3, 2024 4.70% = 3.41% × 1.38
May 4, 2024 6.07% = 4.38% × 1.39
Feb 3, 2024 7.92% = 5.82% × 1.36
Oct 28, 2023 9.32% = 6.79% × 1.37
Jul 29, 2023 10.45% = 7.60% × 1.37
Apr 29, 2023 10.06% = 7.32% × 1.38
Jan 28, 2023 9.39% = 6.83% × 1.38
Oct 29, 2022 7.54% = 5.46% × 1.38
Jul 30, 2022 5.15% = 3.75% × 1.37
Apr 30, 2022 4.43% = 3.23% × 1.37
Jan 29, 2022 3.43% = 2.50% × 1.37
Oct 30, 2021 3.66% = 2.66% × 1.38
Jul 31, 2021 13.87% = 7.86% × 1.76
May 1, 2021 12.83% = 7.23% × 1.77
Jan 30, 2021 11.63% = 6.56% × 1.77
Oct 31, 2020 10.17% = 5.69% × 1.79
Aug 1, 2020 9.44% = 5.15% × 1.83
May 2, 2020 9.59% = 5.21% × 1.84
Feb 1, 2020 10.37% = 5.67% × 1.83
Nov 2, 2019 11.64% = 6.37% × 1.83
Aug 3, 2019 — = — × 1.83
May 4, 2019 — = — × 1.85
Feb 2, 2019 — = — × 1.88

Based on: 10-K (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-Q (reporting date: 2024-02-03), 10-K (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-K (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-K (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-30), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-Q (reporting date: 2020-02-01), 10-K (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-Q (reporting date: 2019-02-02).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2024 is the decrease in financial leverage ratio.

Three-Component Disaggregation of ROE

Analog Devices Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Nov 2, 2024 4.65% = 17.35% × 0.20 × 1.37
Aug 3, 2024 4.70% = 17.07% × 0.20 × 1.38
May 4, 2024 6.07% = 20.45% × 0.21 × 1.39
Feb 3, 2024 7.92% = 24.34% × 0.24 × 1.36
Oct 28, 2023 9.32% = 26.94% × 0.25 × 1.37
Jul 29, 2023 10.45% = 29.23% × 0.26 × 1.37
Apr 29, 2023 10.06% = 28.16% × 0.26 × 1.38
Jan 28, 2023 9.39% = 27.27% × 0.25 × 1.38
Oct 29, 2022 7.54% = 22.88% × 0.24 × 1.38
Jul 30, 2022 5.15% = 17.00% × 0.22 × 1.37
Apr 30, 2022 4.43% = 16.84% × 0.19 × 1.37
Jan 29, 2022 3.43% = 15.18% × 0.16 × 1.37
Oct 30, 2021 3.66% = 19.00% × 0.14 × 1.38
Jul 31, 2021 13.87% = 26.15% × 0.30 × 1.76
May 1, 2021 12.83% = 25.16% × 0.29 × 1.77
Jan 30, 2021 11.63% = 23.99% × 0.27 × 1.77
Oct 31, 2020 10.17% = 21.79% × 0.26 × 1.79
Aug 1, 2020 9.44% = 20.14% × 0.26 × 1.83
May 2, 2020 9.59% = 20.05% × 0.26 × 1.84
Feb 1, 2020 10.37% = 21.06% × 0.27 × 1.83
Nov 2, 2019 11.64% = 22.75% × 0.28 × 1.83
Aug 3, 2019 — = — × — × 1.83
May 4, 2019 — = — × — × 1.85
Feb 2, 2019 — = — × — × 1.88

Based on: 10-K (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-Q (reporting date: 2024-02-03), 10-K (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-K (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-K (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-30), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-Q (reporting date: 2020-02-01), 10-K (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-Q (reporting date: 2019-02-02).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2024 is the decrease in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Analog Devices Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Nov 2, 2024 4.65% = 0.92 × 0.85 × 22.27% × 0.20 × 1.37
Aug 3, 2024 4.70% = 0.90 × 0.85 × 22.10% × 0.20 × 1.38
May 4, 2024 6.07% = 0.94 × 0.89 × 24.65% × 0.21 × 1.39
Feb 3, 2024 7.92% = 0.92 × 0.92 × 28.78% × 0.24 × 1.36
Oct 28, 2023 9.32% = 0.92 × 0.93 × 31.47% × 0.25 × 1.37
Jul 29, 2023 10.45% = 0.92 × 0.94 × 33.69% × 0.26 × 1.37
Apr 29, 2023 10.06% = 0.89 × 0.95 × 33.25% × 0.26 × 1.38
Jan 28, 2023 9.39% = 0.89 × 0.95 × 32.26% × 0.25 × 1.38
Oct 29, 2022 7.54% = 0.89 × 0.94 × 27.46% × 0.24 × 1.38
Jul 30, 2022 5.15% = 1.00 × 0.90 × 18.93% × 0.22 × 1.37
Apr 30, 2022 4.43% = 1.01 × 0.89 × 18.65% × 0.19 × 1.37
Jan 29, 2022 3.43% = 1.05 × 0.86 × 16.70% × 0.16 × 1.37
Oct 30, 2021 3.66% = 1.05 × 0.88 × 20.68% × 0.14 × 1.38
Jul 31, 2021 13.87% = 0.89 × 0.91 × 31.99% × 0.30 × 1.76
May 1, 2021 12.83% = 0.92 × 0.90 × 30.36% × 0.29 × 1.77
Jan 30, 2021 11.63% = 0.92 × 0.89 × 29.17% × 0.27 × 1.77
Oct 31, 2020 10.17% = 0.93 × 0.87 × 26.86% × 0.26 × 1.79
Aug 1, 2020 9.44% = 0.94 × 0.86 × 24.96% × 0.26 × 1.83
May 2, 2020 9.59% = 0.93 × 0.85 × 25.40% × 0.26 × 1.84
Feb 1, 2020 10.37% = 0.92 × 0.86 × 26.61% × 0.27 × 1.83
Nov 2, 2019 11.64% = 0.92 × 0.87 × 28.62% × 0.28 × 1.83
Aug 3, 2019 — = — × — × — × — × 1.83
May 4, 2019 — = — × — × — × — × 1.85
Feb 2, 2019 — = — × — × — × — × 1.88

Based on: 10-K (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-Q (reporting date: 2024-02-03), 10-K (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-K (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-K (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-30), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-Q (reporting date: 2020-02-01), 10-K (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-Q (reporting date: 2019-02-02).

The primary reason for the decrease in return on equity ratio (ROE) over Q4 2024 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Analog Devices Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Nov 2, 2024 3.39% = 17.35% × 0.20
Aug 3, 2024 3.41% = 17.07% × 0.20
May 4, 2024 4.38% = 20.45% × 0.21
Feb 3, 2024 5.82% = 24.34% × 0.24
Oct 28, 2023 6.79% = 26.94% × 0.25
Jul 29, 2023 7.60% = 29.23% × 0.26
Apr 29, 2023 7.32% = 28.16% × 0.26
Jan 28, 2023 6.83% = 27.27% × 0.25
Oct 29, 2022 5.46% = 22.88% × 0.24
Jul 30, 2022 3.75% = 17.00% × 0.22
Apr 30, 2022 3.23% = 16.84% × 0.19
Jan 29, 2022 2.50% = 15.18% × 0.16
Oct 30, 2021 2.66% = 19.00% × 0.14
Jul 31, 2021 7.86% = 26.15% × 0.30
May 1, 2021 7.23% = 25.16% × 0.29
Jan 30, 2021 6.56% = 23.99% × 0.27
Oct 31, 2020 5.69% = 21.79% × 0.26
Aug 1, 2020 5.15% = 20.14% × 0.26
May 2, 2020 5.21% = 20.05% × 0.26
Feb 1, 2020 5.67% = 21.06% × 0.27
Nov 2, 2019 6.37% = 22.75% × 0.28
Aug 3, 2019 — = — × —
May 4, 2019 — = — × —
Feb 2, 2019 — = — × —

Based on: 10-K (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-Q (reporting date: 2024-02-03), 10-K (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-K (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-K (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-30), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-Q (reporting date: 2020-02-01), 10-K (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-Q (reporting date: 2019-02-02).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2024 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Analog Devices Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Nov 2, 2024 3.39% = 0.92 × 0.85 × 22.27% × 0.20
Aug 3, 2024 3.41% = 0.90 × 0.85 × 22.10% × 0.20
May 4, 2024 4.38% = 0.94 × 0.89 × 24.65% × 0.21
Feb 3, 2024 5.82% = 0.92 × 0.92 × 28.78% × 0.24
Oct 28, 2023 6.79% = 0.92 × 0.93 × 31.47% × 0.25
Jul 29, 2023 7.60% = 0.92 × 0.94 × 33.69% × 0.26
Apr 29, 2023 7.32% = 0.89 × 0.95 × 33.25% × 0.26
Jan 28, 2023 6.83% = 0.89 × 0.95 × 32.26% × 0.25
Oct 29, 2022 5.46% = 0.89 × 0.94 × 27.46% × 0.24
Jul 30, 2022 3.75% = 1.00 × 0.90 × 18.93% × 0.22
Apr 30, 2022 3.23% = 1.01 × 0.89 × 18.65% × 0.19
Jan 29, 2022 2.50% = 1.05 × 0.86 × 16.70% × 0.16
Oct 30, 2021 2.66% = 1.05 × 0.88 × 20.68% × 0.14
Jul 31, 2021 7.86% = 0.89 × 0.91 × 31.99% × 0.30
May 1, 2021 7.23% = 0.92 × 0.90 × 30.36% × 0.29
Jan 30, 2021 6.56% = 0.92 × 0.89 × 29.17% × 0.27
Oct 31, 2020 5.69% = 0.93 × 0.87 × 26.86% × 0.26
Aug 1, 2020 5.15% = 0.94 × 0.86 × 24.96% × 0.26
May 2, 2020 5.21% = 0.93 × 0.85 × 25.40% × 0.26
Feb 1, 2020 5.67% = 0.92 × 0.86 × 26.61% × 0.27
Nov 2, 2019 6.37% = 0.92 × 0.87 × 28.62% × 0.28
Aug 3, 2019 — = — × — × — × —
May 4, 2019 — = — × — × — × —
Feb 2, 2019 — = — × — × — × —

Based on: 10-K (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-Q (reporting date: 2024-02-03), 10-K (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-K (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-K (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-30), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-Q (reporting date: 2020-02-01), 10-K (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-Q (reporting date: 2019-02-02).

The primary reason for the decrease in return on assets ratio (ROA) over Q4 2024 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Analog Devices Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Nov 2, 2024 17.35% = 0.92 × 0.85 × 22.27%
Aug 3, 2024 17.07% = 0.90 × 0.85 × 22.10%
May 4, 2024 20.45% = 0.94 × 0.89 × 24.65%
Feb 3, 2024 24.34% = 0.92 × 0.92 × 28.78%
Oct 28, 2023 26.94% = 0.92 × 0.93 × 31.47%
Jul 29, 2023 29.23% = 0.92 × 0.94 × 33.69%
Apr 29, 2023 28.16% = 0.89 × 0.95 × 33.25%
Jan 28, 2023 27.27% = 0.89 × 0.95 × 32.26%
Oct 29, 2022 22.88% = 0.89 × 0.94 × 27.46%
Jul 30, 2022 17.00% = 1.00 × 0.90 × 18.93%
Apr 30, 2022 16.84% = 1.01 × 0.89 × 18.65%
Jan 29, 2022 15.18% = 1.05 × 0.86 × 16.70%
Oct 30, 2021 19.00% = 1.05 × 0.88 × 20.68%
Jul 31, 2021 26.15% = 0.89 × 0.91 × 31.99%
May 1, 2021 25.16% = 0.92 × 0.90 × 30.36%
Jan 30, 2021 23.99% = 0.92 × 0.89 × 29.17%
Oct 31, 2020 21.79% = 0.93 × 0.87 × 26.86%
Aug 1, 2020 20.14% = 0.94 × 0.86 × 24.96%
May 2, 2020 20.05% = 0.93 × 0.85 × 25.40%
Feb 1, 2020 21.06% = 0.92 × 0.86 × 26.61%
Nov 2, 2019 22.75% = 0.92 × 0.87 × 28.62%
Aug 3, 2019 — = — × — × —
May 4, 2019 — = — × — × —
Feb 2, 2019 — = — × — × —

Based on: 10-K (reporting date: 2024-11-02), 10-Q (reporting date: 2024-08-03), 10-Q (reporting date: 2024-05-04), 10-Q (reporting date: 2024-02-03), 10-K (reporting date: 2023-10-28), 10-Q (reporting date: 2023-07-29), 10-Q (reporting date: 2023-04-29), 10-Q (reporting date: 2023-01-28), 10-K (reporting date: 2022-10-29), 10-Q (reporting date: 2022-07-30), 10-Q (reporting date: 2022-04-30), 10-Q (reporting date: 2022-01-29), 10-K (reporting date: 2021-10-30), 10-Q (reporting date: 2021-07-31), 10-Q (reporting date: 2021-05-01), 10-Q (reporting date: 2021-01-30), 10-K (reporting date: 2020-10-31), 10-Q (reporting date: 2020-08-01), 10-Q (reporting date: 2020-05-02), 10-Q (reporting date: 2020-02-01), 10-K (reporting date: 2019-11-02), 10-Q (reporting date: 2019-08-03), 10-Q (reporting date: 2019-05-04), 10-Q (reporting date: 2019-02-02).

The primary reason for the increase in net profit margin ratio over Q4 2024 is the increase in effect of taxes measured by tax burden ratio.