Is ADI's cost-cutting strategy working in 2024?

Analog Devices (ADI) has demonstrated resilience in maintaining its operating margins despite a challenging economic landscape in 2024. The company's gross margin stood at 57.08%, with a net margin of 17.35% and an operating margin of 18.98% as of December 31, 2024. This indicates that ADI's cost-cutting strategy has been effective in preserving profitability amidst declining revenues and gross margins.

|code|Ticker|Name|Date|Gross Profit Margin|Operating Profit Margin|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|---|
|ADI|ADI.O|Analog Devices|2024 Q1|58.6596|20.614923206235193|18.4155|185|
|ADI|ADI.O|Analog Devices|2024 Q2|56.8091|18.029266592789885|16.3744|185|
|ADI|ADI.O|Analog Devices|2024 Q3|56.7761|18.25403439198895|16.5694|185|
|ADI|ADI.O|Analog Devices|2024 Q4|57.0834|18.981205044108208|17.3464|185|

Moreover, ADI's return on equity (ROE) was 4.62% and return on assets (ROA) was 4.17% as of December 31, 2024. These figures, along with the company's focus on disciplined cost control and strategic partnerships, suggest that ADI's cost-cutting strategy has been successful in 2024. The company's ability to manage costs and maintain profitability is a positive sign for its financial health and competitiveness in the semiconductor industry.