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Analog Devices Inc (NAS:ADI)
Debt to Equity
0.57 (As of Jul. 2014)

Analog Devices Inc's current portion of long-term debt for the quarter that ended in Jul. 2014 was $1,995 Mil. Analog Devices Inc's long-term debt for the quarter that ended in Jul. 2014 was $873 Mil. Analog Devices Inc's total equity for the quarter that ended in Jul. 2014 was $5,007 Mil. Analog Devices Inc's debt to equity for the quarter that ended in Jul. 2014 was 0.57.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.


Definition

Debt to Equity measures the financial leverage a company has.

Analog Devices Inc's Debt to Equity Ratio for the fiscal year that ended in Oct. 2013 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(0 + 872.241) / 4739.576
=0.18

Analog Devices Inc's Debt to Equity Ratio for the quarter that ended in Jul. 2014 is calculated as

Debt to Equity=Total Debt / Total Equity
=(Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity
=(1995.398 + 872.652) / 5007.197
=0.57

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.


Explanation

In the calculation of Debt to Equity, we use the total of Current Portion of Long-Term Debt and Long-Term Debt divided by Total Equity. In some calculations, Total Liabilities is used to for calculation.


Be Aware

Because a company can increase its Return on Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return on Equity companies.


Related Terms

Current Portion of Long-Term Debt, Long-Term Debt, Total Equity, Return on Equity


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Analog Devices Inc Annual Data

Oct04Oct05Oct06Oct07Oct08Oct09Oct10Oct11Oct12Oct13
deb2equity 0.000.000.000.000.000.150.130.230.200.18

Analog Devices Inc Quarterly Data

Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14Jul14
deb2equity 0.220.210.200.180.170.190.180.180.180.57
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