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GuruFocus has detected 5 Warning Signs with Analog Devices Inc \$ADI.
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Analog Devices Inc (NAS:ADI)
Debt-to-Equity
0.72 (As of Jan. 2017)

Analog Devices Inc's current portion of long-term debt for the quarter that ended in Jan. 2017 was \$0 Mil. Analog Devices Inc's long-term debt for the quarter that ended in Jan. 2017 was \$3,805 Mil. Analog Devices Inc's total equity for the quarter that ended in Jan. 2017 was \$5,306 Mil. Analog Devices Inc's debt to equity for the quarter that ended in Jan. 2017 was 0.72.

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. 2016 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (0 + 1732.177) / 5165.618 = 0.34

Analog Devices Inc's Debt to Equity Ratio for the quarter that ended in Jan. 2017 is calculated as

 Debt to Equity = Total Debt / Total Equity = (Current Portion of Long-Term Debt + Long-Term Debt) / Total Equity = (0 + 3805.4) / 5306.431 = 0.72

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Analog Devices Inc Annual Data

 Oct07 Oct08 Oct09 Oct10 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 deb2equity 0.00 0.00 0.15 0.13 0.23 0.20 0.18 0.18 0.17 0.34

Analog Devices Inc Quarterly Data

 Oct14 Jan15 Apr15 Jul15 Oct15 Jan16 Apr16 Jul16 Oct16 Jan17 deb2equity 0.18 0.18 0.18 0.17 0.17 0.35 0.36 0.35 0.34 0.72
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