ADINEUTRAL

ADI Current Ratio Analysis

1.75x

Higher than 43% of Technology sector peers

Updated 2477h ago·SEC filings & market data

Key Takeaway

Analog Devices’ current ratio of 1.75x means the company has $1.75 in current assets for every $1.00 in short-term liabilities, indicating a solid ability to cover obligations due within a year.

Sector Performance

43th percentile

ADI

1.75x

Sector Median

1.99x

Sector Avg

15.09x

Prior Period

1.76x(Apr 2026)

→ Stable

📊

Deep Analysis

Analog Devices’ current ratio of 1.75x means the company has $1.75 in current assets for every $1.00 in short-term liabilities, indicating a solid ability to cover obligations due within a year.

This sits below the technology-sector median of 1.95x, placing ADI at the 46th percentile among peers—slightly less liquid than the typical sector company. No year-over-year, quarter-over-quarter, or multi-quarter trend data is available, so the direction of this metric cannot be assessed. The moderate ratio near the middle of the peer group, combined with the absence of a clear trend, offers no strong signal of either deteriorating or improving short-term financial health. This aligns with the NEUTRAL verdict, as the current ratio neither highlights an unusual risk nor a clear advantage over peers.

Frequently Asked Questions

What does the Current Ratio tell investors about ADI?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

How does ADI's Current Ratio compare to its sector?

ADI's Current Ratio of 1.75x compares to a Technology sector median of 1.99x, placing it in the 43th percentile.

Who are ADI's closest peers by Current Ratio?

The closest Technology peers by Current Ratio include: BILL (1.66x), CRWD (1.53x), SMAR (1.51x), ASML (1.36x), ACN (1.34x).

📚

Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.