At Ando Money, we bring you the latest insights on financial giants like Analog Devices.
Let’s explore Analog Devices net worth, revenue, and financial performance in 2024. Discover how this semiconductor company shapes its market presence.
Quick Facts
| FACT | DETAIL |
|---|---|
| Name | Analog Devices |
| Full Name | Analog Devices, Inc. |
| Industry | Semiconductors |
| Traded as | NASDAQ: ADI |
| ISIN | N/A |
| Founded | 1965 |
| Founders | Ray Stata Matthew Lorber |
| Country/Territory | United States |
| Headquarters | Wilmington, Massachusetts |
| Chief Executive Officer | Vincent Roche |
| Number of Employees | 26,000 |
| Market Cap | $115.43 Billion |
| Total Assets | $48.62 Billion |
| Total Equity | $35.19 Billion |
| Revenue | $9.70 Billion (TTM) |
| Net Income | $392 Million (Q3 2024) |
What is the Net Worth/Market Cap of Analog Devices in 2024?
Analog Devices has an estimated net worth with a market capitalization of $115.43 billion as of 2024. This valuation makes it one of the most notable companies in the semiconductor industry.
In comparison to other companies within the tech sector, Analog Devices holds a strong position. For context, some of its closest industry competitors and related brands include:
- Texas Instruments
- Broadcom Inc.
- Qualcomm
- NXP Semiconductors
- ON Semiconductor
- Intel Corporation
- Micron Technology
- Infineon Technologies
- Maxim Integrated Products
If you’re curious to learn more about other top-performing companies, consider exploring our analysis on the richest companies.
Financial Performance Overview
Revenue Breakdown by Segment
Analog Devices reported $2.31 billion in revenue for Q3 2024. The breakdown of revenue among its segments is as follows:
- Industrial Segment: $1.06 billion (46% of total revenue), showing significant influence on the company’s overall financials despite a decrease from previous periods.
- Automotive Segment: Contributed $670 million (29% of revenue), demonstrating a solid performance and reflecting the growing demand in the automotive electronics market.
- Communications Segment: Generated $267 million (12% of revenue), facing a decline compared to previous results, but still forming a key part of the company’s financial structure.
- Consumer Segment: Accounted for $317 million (14% of total revenue), showing a slight growth over the period, indicating stable demand in this area.
Operating Income and Margins Analysis
Operating income reached $491 million in Q3 2024, which accounted for an operating margin of 21.2%. The adjusted operating income stood at $952 million, representing a robust adjusted operating margin of 41.2%.
Although there was a decrease in margins compared to the previous year, the company managed to stabilize its performance through cost management and strategic operations.
Cash Flow and Liquidity
In terms of liquidity, Analog Devices reported an operating cash flow of $4.0 billion over the trailing twelve months ending in August 2024.
The free cash flow during the same period was $2.9 billion, showcasing the company’s ability to generate cash effectively after accounting for capital expenditures.
The company’s efficient cash management is apparent, balancing investment in infrastructure while maintaining healthy cash reserves.
This also enabled Analog Devices to return a substantial amount of $574 million to shareholders in Q3 2024 through dividends and stock repurchases.
Dividend Payments and Share Repurchases
One of the firm’s strategies to enhance shareholder value is through dividend payments and share repurchases.
The company declared a quarterly dividend of $0.92 per share, reflecting its consistent approach to rewarding investors.
In Q3 2024 alone, $456 million was paid out in dividends, demonstrating the firm’s commitment to distributing profits.
Additionally, stock repurchases amounted to $118 million in the same quarter. Together with dividends, these actions resulted in a total return to shareholders of $574 million.
Expense and Cost Management
Expense management played a crucial role in Analog Devices’ financial performance.
The company’s operating expenses included research and development, selling, marketing, general administrative costs, and amortization of intangibles.
For Q3 2024, these expenses were $819 million, which represented 35.5% of revenue. The company is actively working on balancing R&D spending to ensure continuous product innovation while optimizing overall operational costs.
Balance Sheet Strength
The balance sheet as of August 3, 2024, reflected strong financial health, with $48.62 billion in total assets and $35.19 billion in total equity.
Cash and short-term investments stood at $2.55 billion, with a good portion allocated to support business operations and growth.
FAQs About Analog Devices
What Products Drive Analog Devices’ Revenue?
Analog Devices generates revenue primarily from its semiconductors and high-performance analog solutions. These are utilized across various markets including industrial, automotive, communications, and consumer electronics.
How Does Analog Devices Return Value to Shareholders?
The company returns value through dividends and share repurchases. In Q3 2024, it paid a dividend of $0.92 per share and repurchased $118 million worth of stock.
How is Analog Devices’ Cash Flow Managed?
Cash flow is effectively managed, with $4.0 billion generated from operations over the trailing twelve months. This ensures sufficient liquidity for investments, dividends, and other financial commitments.
What Are Analog Devices’ Financial Projections for Q4 2024?
The company forecasts revenue of $2.40 billion with an expected operating margin of around 22.3% and adjusted margin near 41%. Earnings per share are estimated at $0.85 (reported) and $1.63 (adjusted).
How Does Analog Devices Compare to Competitors in the Semiconductor Industry?
Analog Devices holds a significant market cap and robust financials compared to peers like Texas Instruments, Broadcom, and Intel, showcasing its competitive position in the semiconductor industry.
Conclusion
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