Analog Devices (Analog Devices) Degree of Financial Leverage : 0.87 (As of Jan. 2024)

Analog Devices Degree of Financial Leverage Chart

Analog Devices Annual Data
	Trend	Oct14	Oct15	Oct16	Oct17	Oct18	Oct19	Oct20	Oct21	Oct22	Oct23
Degree of Financial Leverage		Get a 7-Day Free Trial					0.86	0.81	21.83	0.37	1.37

Analog Devices Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
Degree of Financial Leverage	Get a 7-Day Free Trial															0.58	0.74	0.98	1.37	0.87

Competitive Comparison of Analog Devices's Degree of Financial Leverage

For the Semiconductors subindustry, Analog Devices's Degree of Financial Leverage, along with its competitors' market caps and Degree of Financial Leverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Analog Devices's Degree of Financial Leverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Analog Devices's Degree of Financial Leverage distribution charts can be found below:

* The bar in red indicates where Analog Devices's Degree of Financial Leverage falls into.

Analog Devices Degree of Financial Leverage Calculation

Analog Devices's Degree of Financial Leverage for the quarter that ended in Jan. 2024 is calculated as:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

** TTM data of EPS and EBIT was used to calculate Degree of Financial Leverage.
*** Please be aware that the Degree of Financial Leverage calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.

Analog Devices  (NAS:ADI) Degree of Financial Leverage Explanation

Degree of Financial Leverage (DFL) is a leverage ratio that measures the sensitivity of a company’s Earnings per Share (EPS) to fluctuations in its operating income, also referred to as Earnings Before Interest and Taxes (EBIT), resulting from adjustments in its capital structure. DFL is an essential tool for companies to assess the appropriate level of debt or financial leverage in their capital structure. When EBIT remains relatively stable, it results in stable earnings and earnings per share. In such cases, the company may consider taking on substantial debt. However, for companies operating in industries with significant fluctuations in EBIT, it is advisable to keep debt at a manageable level.

The higher Degree of Financial Leverage, the more volatile earnings will be. Because interest is a fixed expense, leverage can amplify earnings and EPS. This is beneficial when EBIT is growing, but it can become problematic in tough economic conditions when EBIT is under pressure.

Be Aware

The use of financial leverage varies across different industries and business sectors, and the application of Degree of Financial Leverage (DFL) should be adjusted accordingly.

Analog Devices Degree of Financial Leverage Related Terms

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Analog Devices (Analog Devices) Business Description