Analog Devices, Inc. — Earnings Quality Grade F
ADI · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 48 days, change -4 days YoY
AR growth 7.5% vs revenue growth 16.9%
Revenue 16.9%, CFFO 24.9%. Cash follows revenue
Expense Quality
Inventory 14.4% vs COGS 5.0%. Normal
CapEx growth -27.0% vs revenue 16.9%. Normal
SG&A/Gross Profit = 18.5%, excellent (<30%)
Gross margin 61.5%, change +4.4pp. Stable
Cash Flow Quality
CFFO/NI = 2.12. Profits backed by cash
FCF $4.3B, FCF/NI = 1.89
Accruals ratio = -5.3%. Low accruals
Cash $3.7B covers only 42% of debt $8.7B
Balance Sheet Health
Goodwill+Intangibles $35.0B = 103% of equity. Over 50%
Debt/EBITDA = 1.7x. Healthy
Other assets -0.8% vs revenue 16.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -4% YoY. Normal
Manipulation Score
M-Score = -2.77 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08