Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Analog Devices Inc., liquidity ratios
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Analog Devices Inc. current ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Analog Devices Inc. quick ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Analog Devices Inc. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |
Current Ratio
Analog Devices Inc., current ratio 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) | |||||||
| Current assets | 4,384,022) | 4,937,992) | 5,378,317) | 2,517,688) | 1,985,126) | 2,112,126) | |
| Current liabilities | 3,200,971) | 2,442,655) | 2,770,312) | 1,364,986) | 1,508,632) | 1,406,138) | |
| Liquidity Ratio | |||||||
| Current ratio1 | 1.37 | 2.02 | 1.94 | 1.84 | 1.32 | 1.50 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 2.51 | 2.36 | 2.02 | 2.54 | 1.95 | — | |
| Applied Materials Inc. | 2.60 | 2.16 | 2.54 | 3.00 | 2.30 | 2.64 | |
| Broadcom Inc. | 2.82 | 2.62 | 2.64 | 1.87 | 1.44 | 3.90 | |
| First Solar Inc. | 3.55 | 3.65 | 4.39 | 3.56 | 2.73 | — | |
| Intel Corp. | 1.54 | 1.57 | 2.10 | 1.91 | 1.40 | — | |
| KLA Corp. | 2.24 | 2.50 | 2.71 | 2.78 | 2.44 | — | |
| Lam Research Corp. | 3.16 | 2.69 | 3.30 | 3.43 | 3.61 | — | |
| Micron Technology Inc. | 4.46 | 2.89 | 3.10 | 2.71 | 2.58 | — | |
| NVIDIA Corp. | 3.52 | 6.65 | 4.09 | 7.67 | 7.94 | — | |
| Qualcomm Inc. | 2.33 | 1.75 | 1.68 | 2.14 | 1.88 | — | |
| Texas Instruments Inc. | 4.55 | 4.70 | 5.33 | 4.28 | 4.13 | — | |
| Current Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 2.46 | 2.36 | 2.48 | 2.48 | 2.06 | — | |
| Current Ratio, Industry | |||||||
| Information Technology | 1.46 | 1.43 | 1.64 | 1.85 | 1.77 | — | |
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 2023 Calculation
Current ratio = Current assets ÷ Current liabilities
= 4,384,022 ÷ 3,200,971 = 1.37
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Analog Devices Inc. current ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Quick Ratio
Analog Devices Inc., quick ratio 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) | |||||||
| Cash and cash equivalents | 958,061) | 1,470,572) | 1,977,964) | 1,055,860) | 648,322) | 816,591) | |
| Accounts receivable less allowances | 1,469,734) | 1,800,462) | 1,459,056) | 737,536) | 635,136) | 639,717) | |
| Total quick assets | 2,427,795) | 3,271,034) | 3,437,020) | 1,793,396) | 1,283,458) | 1,456,308) | |
| Current liabilities | 3,200,971) | 2,442,655) | 2,770,312) | 1,364,986) | 1,508,632) | 1,406,138) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.76 | 1.34 | 1.24 | 1.31 | 0.85 | 1.04 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 1.67 | 1.57 | 1.49 | 1.81 | 1.43 | — | |
| Applied Materials Inc. | 1.63 | 1.17 | 1.64 | 1.95 | 1.38 | 1.62 | |
| Broadcom Inc. | 2.34 | 2.18 | 2.27 | 1.56 | 1.21 | 3.26 | |
| First Solar Inc. | 2.62 | 2.80 | 3.10 | 2.38 | 2.00 | — | |
| Intel Corp. | 1.01 | 1.01 | 1.38 | 1.24 | 0.93 | — | |
| KLA Corp. | 1.33 | 1.57 | 1.81 | 1.82 | 1.54 | — | |
| Lam Research Corp. | 1.95 | 1.72 | 2.11 | 2.22 | 2.16 | — | |
| Micron Technology Inc. | 2.53 | 1.92 | 2.17 | 1.82 | 1.74 | — | |
| NVIDIA Corp. | 2.61 | 5.96 | 3.56 | 7.04 | 6.66 | — | |
| Qualcomm Inc. | 1.51 | 1.01 | 1.34 | 1.75 | 1.65 | — | |
| Texas Instruments Inc. | 3.12 | 3.67 | 4.45 | 3.34 | 3.04 | — | |
| Quick Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 1.65 | 1.64 | 1.80 | 1.79 | 1.48 | — | |
| Quick Ratio, Industry | |||||||
| Information Technology | 1.17 | 1.15 | 1.38 | 1.59 | 1.54 | — | |
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 2023 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= 2,427,795 ÷ 3,200,971 = 0.76
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Analog Devices Inc. quick ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023. |
Cash Ratio
Analog Devices Inc., cash ratio 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) | |||||||
| Cash and cash equivalents | 958,061) | 1,470,572) | 1,977,964) | 1,055,860) | 648,322) | 816,591) | |
| Total cash assets | 958,061) | 1,470,572) | 1,977,964) | 1,055,860) | 648,322) | 816,591) | |
| Current liabilities | 3,200,971) | 2,442,655) | 2,770,312) | 1,364,986) | 1,508,632) | 1,406,138) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.30 | 0.60 | 0.71 | 0.77 | 0.43 | 0.58 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.86 | 0.92 | 0.85 | 0.95 | 0.64 | — | |
| Applied Materials Inc. | 0.93 | 0.35 | 0.86 | 1.29 | 0.81 | 0.99 | |
| Broadcom Inc. | 1.92 | 1.76 | 1.94 | 1.20 | 0.73 | 1.84 | |
| First Solar Inc. | 1.61 | 2.48 | 2.51 | 2.06 | 1.64 | — | |
| Intel Corp. | 0.89 | 0.88 | 1.03 | 0.97 | 0.59 | — | |
| KLA Corp. | 0.87 | 0.94 | 1.19 | 1.17 | 0.98 | — | |
| Lam Research Corp. | 1.28 | 0.77 | 1.25 | 1.55 | 1.54 | — | |
| Micron Technology Inc. | 2.01 | 1.24 | 1.34 | 1.23 | 1.24 | — | |
| NVIDIA Corp. | 2.03 | 4.89 | 2.95 | 6.11 | 5.58 | — | |
| Qualcomm Inc. | 1.18 | 0.54 | 1.04 | 1.29 | 1.37 | — | |
| Texas Instruments Inc. | 2.58 | 3.04 | 3.79 | 2.75 | 2.54 | — | |
| Cash Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 1.23 | 1.16 | 1.31 | 1.33 | 1.04 | — | |
| Cash Ratio, Industry | |||||||
| Information Technology | 0.75 | 0.72 | 0.96 | 1.18 | 1.10 | — | |
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 2023 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= 958,061 ÷ 3,200,971 = 0.30
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Analog Devices Inc. cash ratio deteriorated from 2021 to 2022 and from 2022 to 2023. |