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ADI (Analog Devices) ROA % : 3.22% (As of Jul. 2024)


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What is Analog Devices ROA %?

ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Analog Devices's annualized Net Income for the quarter that ended in Jul. 2024 was $1,569 Mil. Analog Devices's average Total Assets over the quarter that ended in Jul. 2024 was $48,740 Mil. Therefore, Analog Devices's annualized ROA % for the quarter that ended in Jul. 2024 was 3.22%.

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

ADI' s ROA % Range Over the Past 10 Years
Min: 3.39   Med: 6.61   Max: 11.47
Current: 3.39

During the past 13 years, Analog Devices's highest ROA % was 11.47%. The lowest was 3.39%. And the median was 6.61%.

ADI's ROA % is ranked better than
55.38% of 1004 companies
in the Semiconductors industry
Industry Median: 2.48 vs ADI: 3.39

Analog Devices ROA % Historical Data

The historical data trend for Analog Devices's ROA % 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 ROA % Chart

Analog Devices Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
ROA %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.52 5.70 3.77 5.36 6.69

Analog Devices Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
ROA % 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 7.09 4.06 3.81 2.49 3.22

Competitive Comparison of Analog Devices's ROA %

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

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

* The bar in red indicates where Analog Devices's ROA % falls into.



Analog Devices ROA % Calculation

Analog Devices's annualized ROA % for the fiscal year that ended in Oct. 2023 is calculated as:

ROA %=Net Income (A: Oct. 2023 )/( (Total Assets (A: Oct. 2022 )+Total Assets (A: Oct. 2023 ))/ count )
=3314.579/( (50302.35+48794.478)/ 2 )
=3314.579/49548.414
=6.69 %

Analog Devices's annualized ROA % for the quarter that ended in Jul. 2024 is calculated as:

ROA %=Net Income (Q: Jul. 2024 )/( (Total Assets (Q: Apr. 2024 )+Total Assets (Q: Jul. 2024 ))/ count )
=1568.928/( (48861.866+48618.374)/ 2 )
=1568.928/48740.12
=3.22 %

* 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.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jul. 2024) net income data. ROA % is displayed in the 30-year financial page.


Analog Devices  (NAS:ADI) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jul. 2024 )
=Net Income/Total Assets
=1568.928/48740.12
=(Net Income / Revenue)*(Revenue / Total Assets)
=(1568.928 / 9248.836)*(9248.836 / 48740.12)
=Net Margin %*Asset Turnover
=16.96 %*0.1898
=3.22 %

Note: The Net Income data used here is four times the quarterly (Jul. 2024) net income data. The Revenue data used here is four times the quarterly (Jul. 2024) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Analog Devices ROA % Related Terms

Thank you for viewing the detailed overview of Analog Devices's ROA % 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