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Analog Devices has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Good Sign:
Analog Devices Inc shows strong financial strength.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.Analog Devices's Interest Coverage for the quarter that ended in Jan. 2024 was 7.81. Analog Devices's debt to revenue ratio for the quarter that ended in Jan. 2024 was 0.70. As of today, Analog Devices's Altman Z-Score is 5.43.
For the Semiconductors subindustry, Analog Devices's Financial Strength, along with its competitors' market caps and Financial Strength 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.
For the Semiconductors industry and Technology sector, Analog Devices's Financial Strength distribution charts can be found below:
* The bar in red indicates where Analog Devices's Financial Strength falls into.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
Analog Devices's Interest Expense for the months ended in Jan. 2024 was $-77 Mil. Its Operating Income for the months ended in Jan. 2024 was $602 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $5,947 Mil.
Analog Devices's Interest Coverage for the quarter that ended in Jan. 2024 is
Interest Coverage | = | -1 | * | Operating Income (Q: Jan. 2024 ) | / | Interest Expense (Q: Jan. 2024 ) |
= | -1 | * | 602.104 | / | -77.141 | |
= | 7.81 |
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Analog Devices's Debt to Revenue Ratio for the quarter that ended in Jan. 2024 is
Debt to Revenue Ratio | = | Total Debt (Q: Jan. 2024 ) | / | Revenue | ||
= | (Short-Term Debt & Capital Lease Obligation | + | Long-Term Debt & Capital Lease Obligation) | / | Revenue | |
= | (1043.766 | + | 5946.673) | / | 10050.816 | |
= | 0.70 |
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Analog Devices has a Z-score of 5.43, indicating it is in Safe Zones. This implies the Z-Score is strong.
Good Sign:
Altman Z-score of 5.43 is strong.
* 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.
Analog Devices (NAS:ADI) Financial Strength Explanation
The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.
Analog Devices has the Financial Strength Rank of 8. It shows strong financial strength and is unlikely to fall into distressed situations.
Thank you for viewing the detailed overview of Analog Devices's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.
Vincent Roche | officer: V.P., WORLDWIDE SALES | |
James Champy | director | C/O PEROT SYSTEMS CORP, 2300 WEST PLANO PKWY, PLANO TX 75075 |
Vivek Jain | officer: SVP, Global Operations | 120 SAN GABRIEL DRIVE, SUNNYVALE CA 94086 |
James Michael Mollica | officer: Interim CFO | C/O ANALOG DEVICES, INC., ONE ANALOG WAY, WILMINGTON MA 01887 |
Prashanth Mahendra-rajah | officer: SVP, Finance & CFO | C/O WABCO HOLDINGS INC., ONE CENTENNIAL AVENUE, PISCATAWAY NJ 08855 |
Kenton J Sicchitano | director | ONE TECHNOLOGY WAY, C/O ANALOG DEVICES, INC., NORWOOD MA 02062 |
Stephen M Jennings | director | LTX CORPORATION, UNIVERSITY AVE, WESTWOOD MA 02090 |
Edward H. Frank | director | C/O FUSION-IO, INC., 2855 E. COTTONWOOD PARKWAY, SUITE 100, SALT LAKE CITY UT 84121 |
Michael Sondel | officer: CAO (principal acct. officer) | ONE TECHNOLOGY WAY, NORWOOD MA 02062 |
Tunc Doluca | director | |
Ray Stata | director, officer: CHAIRMAN | |
Andre' Andonian | director | ONE ANALOG WAY, WILMINGTON MA 01887 |
Bruce R Evans | director | C/O SUMMIT PARTNERS, 222 BERKELEY STREET, 18TH FLOOR, BOSTON MA 02116 |
Gregory M Bryant | officer: Executive Vice President | 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054 |
Mercedes Johnson | director | MICRON TECHNOLOGY, INC, 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716 |
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