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Analog Devices Financial Strength

: 7 (As of Apr. 2022)
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Analog Devices has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Analog Devices's Interest Coverage for the quarter that ended in Apr. 2022 was 19.47. Analog Devices's debt to revenue ratio for the quarter that ended in Apr. 2022 was 0.53. As of today, Analog Devices's Altman Z-Score is 4.66.


Competitive Comparison

For the Semiconductors subindustry, Analog Devices's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

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

* The bar in red indicates where Analog Devices's Financial Strength falls into.



Analog Devices Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Analog Devices's Interest Expense for the months ended in Apr. 2022 was $-50 Mil. Its Operating Income for the months ended in Apr. 2022 was $965 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Apr. 2022 was $6,253 Mil.

Analog Devices's Interest Coverage for the quarter that ended in Apr. 2022 is

Interest Coverage=-1*Operating Income (Q: Apr. 2022 )/Interest Expense (Q: Apr. 2022 )
=-1*964.835/-49.548
=19.47

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Analog Devices's Debt to Revenue Ratio for the quarter that ended in Apr. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Apr. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 6253.215) / 11888.256
=0.53

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Analog Devices has a Z-score of 4.66, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 4.66 is strong.

* 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) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Analog Devices has the Financial Strength Rank of 7.


Analog Devices Financial Strength Related Terms

Thank you for viewing the detailed overview of Analog Devices's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


Analog Devices Business Description

Analog Devices logo
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
Bryant Gregory M officer: Executive Vice President 2200 MISSION COLLEGE BLVD SANTA CLARA CA 95054
Jain Vivek officer: SVP, Global Operations 120 SAN GABRIEL DRIVE SUNNYVALE CA 94086
Doluca Tunc director
Johnson Mercedes director MICRON TECHNOLOGY, INC 8000 S FEDERAL WAY, MS 1-557 BOISE ID 83716
Sacks Anelise Angelino officer: SVP, Chief Customer Officer ONE ANALOG WAY WILMINGTON MA 01887
Glimeher Laurie H director WEILL CORNELL MED COLLEGE, CORNELL UNIV 1300 YORK AVENUE, F-113 NEW YORK NY 10065
Wee Susie director 1008 PARADISE WAY PALO ALTO CA 94306
Sondel Michael officer: CAO (principal acct. officer) ONE TECHNOLOGY WAY NORWOOD MA 02062
Chandrakasan Anantha P. director ONE TECHNOLOGY WAY NORWOOD MA 02062
Golz Karen director ONE TECHNOLOGY WAY NORWOOD MA 02062
Mahendra-rajah Prashanth officer: SVP, Finance & CFO C/O WABCO HOLDINGS INC. ONE CENTENNIAL AVENUE PISCATAWAY NJ 08855
Pietkiewicz Steve officer: SVP, Power Products 1630 MCCARTHY BLVD. MILPITAS CA 95035
Henderson Gregory N. officer: SVP, Atmtve, Comm, ArSpc & Def C/O HITTITE MICROWAVE CORPORATION 2 ELIZABETH DRIVE CHELMSFORD MA 01824
Jamal Yusuf officer: SVP, Ind, Hlthcr, Cons, IoT ONE TECHNOLOGY WAY NORWOOD MA 02062
Swanson Robert H Jr director 1630 MCCARTHY BLVD MILPITAS CA 95035

Analog Devices Headlines

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