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ADI (Analog Devices) Interest Coverage : 5.91 (As of Jul. 2024)


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What is Analog Devices Interest Coverage?

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 by its Interest Expense. Analog Devices's Operating Income for the three months ended in Jul. 2024 was $504 Mil. Analog Devices's Interest Expense for the three months ended in Jul. 2024 was $-85 Mil. Analog Devices's interest coverage for the quarter that ended in Jul. 2024 was 5.91. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Analog Devices's Interest Coverage or its related term are showing as below:

ADI' s Interest Coverage Range Over the Past 10 Years
Min: 4.83   Med: 10.68   Max: 30.74
Current: 7.22


ADI's Interest Coverage is ranked worse than
69.04% of 617 companies
in the Semiconductors industry
Industry Median: 19.08 vs ADI: 7.22

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Analog Devices Interest Coverage Historical Data

The historical data trend for Analog Devices's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Analog Devices Interest Coverage Chart

Analog Devices Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.89 8.02 9.61 17.73 15.05

Analog Devices Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Interest Coverage 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 13.74 10.45 7.81 5.09 5.91

Competitive Comparison of Analog Devices's Interest Coverage

For the Semiconductors subindustry, Analog Devices's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Analog Devices's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Analog Devices's Interest Coverage falls into.



Analog Devices Interest Coverage Calculation

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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Analog Devices's Interest Coverage for the fiscal year that ended in Oct. 2023 is calculated as

Here, for the fiscal year that ended in Oct. 2023, Analog Devices's Interest Expense was $-265 Mil. Its Operating Income was $3,984 Mil. And its Long-Term Debt & Capital Lease Obligation was $5,902 Mil.

Interest Coverage=-1* Operating Income (A: Oct. 2023 )/Interest Expense (A: Oct. 2023 )
=-1*3983.822/-264.641
=15.05

Analog Devices's Interest Coverage for the quarter that ended in Jul. 2024 is calculated as

Here, for the three months ended in Jul. 2024, Analog Devices's Interest Expense was $-85 Mil. Its Operating Income was $504 Mil. And its Long-Term Debt & Capital Lease Obligation was $6,656 Mil.

Interest Coverage=-1* Operating Income (Q: Jul. 2024 )/Interest Expense (Q: Jul. 2024 )
=-1*503.601/-85.179
=5.91

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Analog Devices  (NAS:ADI) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Analog Devices Interest Coverage Related Terms

Thank you for viewing the detailed overview of Analog Devices's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.


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