Analog Devices Inc Liquidation Value

ADI's liquidation posture as of January 31, 2026 is deeply negative, consistent with its prior periods and the MFFAIS-computed values (CLV -$8.7B, LLV -$7.3B, OLV -$5.5B). The balance sheet is dominated by goodwill ($26.9B) and other intangibles ($7.6B) that receive zero recovery under the liquidation lens, totaling $34.6B of assets wiped to zero in a wind-down. Against total assets of $48.0B, the haircutted asset pool is thin relative to $14.2B in total liabilities carried at face value.

Asset-side recoverable value: Cash and cash equivalents of $2.9B recover at 100%. Short-term investments (AFS corporate and bank obligations) of $1.1B recover near par given short-duration, high-grade instruments. AR of $1.4B recovers at 90-95% (~$1.3B). Inventory of $1.8B recovers at 60% (~$1.1B), with WIP at $1.3B being the least liquid component. PP&E net of $3.2B recovers at 50-70% (~$1.6-$2.2B). Other noncurrent assets of $0.8B are largely intangible-adjacent or deferred tax in nature and receive minimal recovery. Intangibles ex-goodwill ($7.6B) and goodwill ($26.9B) recover at zero. Rough haircutted asset total is approximately $8-9B.

Liability side at face value: Current liabilities of $4.3B include $899M of 2026 Notes reclassified to current, $544M commercial paper, $756M accrued income taxes, and $1.6B accrued liabilities. Long-term debt noncurrent is $7.2B (total senior unsecured principal $8.2B). Noncurrent liabilities total $9.9B including deferred tax liabilities of $2.0B, pension-adjacent obligations embedded in other noncurrent liabilities ($534M), and interest rate swap losses of $19M. Total liabilities are approximately $14.2B at face.

Net recovery to equity: Haircutted assets ($8-9B) minus face liabilities ($14.2B) yields a recovery gap of approximately -$5 to -$6B, consistent with the OLV figure. No change to recovery posture from the prior annual filing (November 1, 2025). The material change this quarter is the reclassification of $900M of December 2026 Notes to current liabilities, increasing current liability pressure, partially offset by a $111M inventory build and $407M net cash increase. The pending IRS transfer-pricing assessment of $267M (FY2018-2019) is not recorded as a liability; if upheld with penalties and interest on subsequent years it would modestly worsen the already-negative recovery posture.