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ADI (Analog Devices) ROE % : 4.45% (As of Jul. 2024)


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What is Analog Devices ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity 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 Stockholders Equity over the quarter that ended in Jul. 2024 was $35,219 Mil. Therefore, Analog Devices's annualized ROE % for the quarter that ended in Jul. 2024 was 4.45%.

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

ADI' s ROE % Range Over the Past 10 Years
Min: 4.66   Med: 11.19   Max: 16.83
Current: 4.66

During the past 13 years, Analog Devices's highest ROE % was 16.83%. The lowest was 4.66%. And the median was 11.19%.

ADI's ROE % is ranked better than
50.1% of 980 companies
in the Semiconductors industry
Industry Median: 4.625 vs ADI: 4.66

Analog Devices ROE % Historical Data

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

Analog Devices Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 11.86 10.30 5.56 7.38 9.20

Analog Devices Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
ROE % 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 9.76 5.58 5.21 3.42 4.45

Competitive Comparison of Analog Devices's ROE %

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

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

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



Analog Devices ROE % Calculation

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

ROE %=Net Income (A: Oct. 2023 )/( (Total Stockholders Equity (A: Oct. 2022 )+Total Stockholders Equity (A: Oct. 2023 ))/ count )
=3314.579/( (36465.323+35565.122)/ 2 )
=3314.579/36015.2225
=9.20 %

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

ROE %=Net Income (Q: Jul. 2024 )/( (Total Stockholders Equity (Q: Apr. 2024 )+Total Stockholders Equity (Q: Jul. 2024 ))/ count )
=1568.928/( (35248.789+35190.109)/ 2 )
=1568.928/35219.449
=4.45 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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. ROE % is displayed in the 30-year financial page.


Analog Devices  (NAS:ADI) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jul. 2024 )
=Net Income/Total Stockholders Equity
=1568.928/35219.449
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(1568.928 / 9248.836)*(9248.836 / 48740.12)*(48740.12 / 35219.449)
=Net Margin %*Asset Turnover*Equity Multiplier
=16.96 %*0.1898*1.3839
=ROA %*Equity Multiplier
=3.22 %*1.3839
=4.45 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jul. 2024 )
=Net Income/Total Stockholders Equity
=1568.928/35219.449
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (1568.928 / 1691.964) * (1691.964 / 2014.404) * (2014.404 / 9248.836) * (9248.836 / 48740.12) * (48740.12 / 35219.449)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9273 * 0.8399 * 21.78 % * 0.1898 * 1.3839
=4.45 %

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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Analog Devices ROE % Related Terms

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