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ADI (Analog Devices) Piotroski F-Score : 4 (As of Oct. 31, 2024)


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What is Analog Devices Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Analog Devices has an F-score of 4 indicating the company's financial situation is typical for a stable company.

The historical rank and industry rank for Analog Devices's Piotroski F-Score or its related term are showing as below:

ADI' s Piotroski F-Score Range Over the Past 10 Years
Min: 4   Med: 6   Max: 8
Current: 4

During the past 13 years, the highest Piotroski F-Score of Analog Devices was 8. The lowest was 4. And the median was 6.


Analog Devices Piotroski F-Score Historical Data

The historical data trend for Analog Devices's Piotroski F-Score can be seen below:

* 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.

* Premium members only.

Analog Devices Piotroski F-Score Chart

Analog Devices Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 5.00 6.00 7.00 6.00 8.00

Analog Devices Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 8.00 5.00 4.00 4.00

Competitive Comparison of Analog Devices's Piotroski F-Score

For the Semiconductors subindustry, Analog Devices's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Analog Devices's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Analog Devices's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Jul24) TTM:Last Year (Jul23) TTM:
Net Income was 498.43 + 462.727 + 302.242 + 392.232 = $1,656 Mil.
Cash Flow from Operations was 1187.294 + 1138.832 + 807.853 + 855.027 = $3,989 Mil.
Revenue was 2716.484 + 2512.704 + 2159.039 + 2312.209 = $9,700 Mil.
Gross Profit was 1646.716 + 1473.941 + 1180.035 + 1311.239 = $5,612 Mil.
Average Total Assets from the begining of this year (Jul23)
to the end of this year (Jul24) was
(49346.739 + 48794.478 + 48388.464 + 48861.866 + 48618.374) / 5 = $48801.9842 Mil.
Total Assets at the begining of this year (Jul23) was $49,347 Mil.
Long-Term Debt & Capital Lease Obligation was $6,656 Mil.
Total Current Assets was $5,443 Mil.
Total Current Liabilities was $3,227 Mil.
Net Income was 936.226 + 961.474 + 977.656 + 877.019 = $3,752 Mil.

Revenue was 3247.716 + 3249.63 + 3262.93 + 3076.495 = $12,837 Mil.
Gross Profit was 2142.815 + 2124.341 + 2144.546 + 1961.615 = $8,373 Mil.
Average Total Assets from the begining of last year (Jul22)
to the end of last year (Jul23) was
(50346.17 + 50302.35 + 50234.52 + 49544.739 + 49346.739) / 5 = $49954.9036 Mil.
Total Assets at the begining of last year (Jul22) was $50,346 Mil.
Long-Term Debt & Capital Lease Obligation was $6,438 Mil.
Total Current Assets was $4,835 Mil.
Total Current Liabilities was $2,831 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Analog Devices's current Net Income (TTM) was 1,656. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Analog Devices's current Cash Flow from Operations (TTM) was 3,989. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Jul23)
=1655.631/49346.739
=0.03355097

ROA (Last Year)=Net Income/Total Assets (Jul22)
=3752.375/50346.17
=0.07453149

Analog Devices's return on assets of this year was 0.03355097. Analog Devices's return on assets of last year was 0.07453149. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Analog Devices's current Net Income (TTM) was 1,656. Analog Devices's current Cash Flow from Operations (TTM) was 3,989. ==> 3,989 > 1,656 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Jul24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jul23 to Jul24
=6655.723/48801.9842
=0.13638222

Gearing (Last Year: Jul23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jul22 to Jul23
=6437.65/49954.9036
=0.12886923

Analog Devices's gearing of this year was 0.13638222. Analog Devices's gearing of last year was 0.12886923. ==> Last year is lower than this year ==> Score 0.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Jul24)=Total Current Assets/Total Current Liabilities
=5442.936/3226.629
=1.68688002

Current Ratio (Last Year: Jul23)=Total Current Assets/Total Current Liabilities
=4835.185/2831.018
=1.70793156

Analog Devices's current ratio of this year was 1.68688002. Analog Devices's current ratio of last year was 1.70793156. ==> Last year's current ratio is higher ==> Score 0.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Analog Devices's number of shares in issue this year was 498.794. Analog Devices's number of shares in issue last year was 503.503. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=5611.931/9700.436
=0.57852358

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=8373.317/12836.771
=0.65229153

Analog Devices's gross margin of this year was 0.57852358. Analog Devices's gross margin of last year was 0.65229153. ==> Last year's gross margin is higher ==> Score 0.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Jul23)
=9700.436/49346.739
=0.19657704

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jul22)
=12836.771/50346.17
=0.25497016

Analog Devices's asset turnover of this year was 0.19657704. Analog Devices's asset turnover of last year was 0.25497016. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+0+0+1+0+0
=4

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Analog Devices has an F-score of 4 indicating the company's financial situation is typical for a stable company.

Analog Devices  (NAS:ADI) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Analog Devices Piotroski F-Score Related Terms

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Analog Devices Business Description

Address
One Analog Way, Wilmington, MA, USA, 01887
Analog Devices is a leading analog, mixed signal, and digital signal processing chipmaker. The firm has a significant market share lead in converter chips, which are used to translate analog signals to digital and vice versa. The company serves tens of thousands of customers, and more than half of its chip sales are made to industrial and automotive end markets. Analog Devices' chips are also incorporated into wireless infrastructure equipment.
Executives
Vincent Roche officer: V.P., WORLDWIDE SALES
Edward H. Frank director C/O FUSION-IO, INC., 2855 E. COTTONWOOD PARKWAY, SUITE 100, SALT LAKE CITY UT 84121
Gregory M Bryant officer: Executive Vice President 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054
James Champy director C/O PEROT SYSTEMS CORP, 2300 WEST PLANO PKWY, PLANO TX 75075
Michael Sondel officer: CAO (principal acct. officer) ONE TECHNOLOGY WAY, NORWOOD MA 02062
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
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
Mercedes Johnson director MICRON TECHNOLOGY, INC, 8000 S FEDERAL WAY, MS 1-557, BOISE ID 83716