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ADI (Analog Devices) Quick Ratio : 1.24 (As of Jul. 2024)


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What is Analog Devices Quick Ratio?

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It is calculated as a company's Total Current Assets excludes Total Inventories divides by its Total Current Liabilities. Analog Devices's quick ratio for the quarter that ended in Jul. 2024 was 1.24.

Analog Devices has a quick ratio of 1.24. It generally indicates good short-term financial strength.

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

ADI' s Quick Ratio Range Over the Past 10 Years
Min: 0.75   Med: 1.36   Max: 8.46
Current: 1.24

During the past 13 years, Analog Devices's highest Quick Ratio was 8.46. The lowest was 0.75. And the median was 1.36.

ADI's Quick Ratio is ranked worse than
67.49% of 1009 companies
in the Semiconductors industry
Industry Median: 1.8 vs ADI: 1.24

Analog Devices Quick Ratio Historical Data

The historical data trend for Analog Devices's Quick Ratio 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 Quick Ratio Chart

Analog Devices Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Quick Ratio
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.91 1.40 1.51 1.45 0.86

Analog Devices Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Quick Ratio 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 1.10 0.86 0.98 1.13 1.24

Competitive Comparison of Analog Devices's Quick Ratio

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

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

* The bar in red indicates where Analog Devices's Quick Ratio falls into.



Analog Devices Quick Ratio Calculation

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.

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

Quick Ratio (A: Oct. 2023 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(4384.022-1642.214)/3200.971
=0.86

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

Quick Ratio (Q: Jul. 2024 )=(Total Current Assets-Total Inventories)/Total Current Liabilities
=(5442.936-1427.936)/3226.629
=1.24

* 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) Quick Ratio Explanation

The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.

In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.

The higher the quick ratio, the better the company's liquidity position.


Analog Devices Quick Ratio 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