Broadcom Inc. (NASDAQ:AVGO)

The financial data indicates significant fluctuations in the intangible asset components over the reported periods, revealing key strategic shifts and asset revaluations.

Goodwill

Goodwill remains relatively stable from 2020 through 2023, hovering around the 43,400 million US$ mark, with minor increases each year. An abrupt and substantial increase occurs in 2024, nearly doubling to approximately 97,800 million US$, which sustains into 2025. This suggests a major acquisition or revaluation event impacting goodwill.

Purchased Technology

Purchased technology shows a declining trend from 24,119 million US$ in 2020 to a low of 12,938 million US$ in 2023. This downward trend reverses sharply beginning in 2024, with the balance rising to over 35,000 million US$ in 2024 and slightly decreasing to around 32,781 million US$ in 2025. This pattern likely reflects both amortization and potential new technology acquisitions or capitalization of technology assets in recent years.

Customer Contracts and Related Relationships

This item follows a trajectory similar to purchased technology, decreasing from about 8,389 million US$ in 2020 to a low of 7,059 million US$ in 2023, then more than doubling in 2024 to over 16,000 million US$. A slight decrease is noted in 2025. This again supports the occurrence of sizable asset additions or reclassifications during 2024–2025.

Trade Names

Trade names decline consistently from 797 million US$ in 2020 to a trough around 649 million US$ in 2023. In 2024 and 2025, the values rebound to above 1,600 million US$. This recovery may relate to the acquisition of new brands or revaluation of existing trade names.

Other Intangible Assets

The “Other” category exhibits a sharp drop from approximately 2,831 million US$ in 2020 to around 166-186 million US$ in 2024 and 2025, indicating disposal or full amortization of these lesser assets over time.

Intangible Assets Subject to Amortization, Gross Carrying Amount

The gross carrying amount decreases markedly from 36,136 million US$ in 2020 to 20,823 million US$ in 2023, followed by a pronounced increase to about 53,500 million US$ in 2024 and above 50,000 million US$ in 2025. This pattern aligns with fluctuations seen in specific intangible asset categories, including purchased technology and customer contracts.

Accumulated Amortization

Accumulated amortization appears somewhat irregular, peaking in 2021 at nearly 24,546 million US$, then decreasing to 15,296 million US$ in 2024 before rising again to 18,917 million US$ in 2025. Such variation may result from adjustments related to asset impairments, changes in amortization schedules, or asset disposals.

Intangible Assets Subject to Amortization, Net Book Value

The net book value of these assets follows a downward trend from 16,757 million US$ in 2020 to 3,857 million US$ in 2023, reflecting ongoing amortization. Subsequently, it surges to 38,243 million US$ in 2024 and remains high at 31,453 million US$ in 2025, indicating large additions or reclassifications of intangible assets.

Research and Development in Progress (IPR&D)

IPR&D values fluctuate minimally at very low levels from 2020 to 2023 but increase substantially to 2,340 million US$ in 2024 before declining to 820 million US$ in 2025, suggesting increased ongoing development efforts or capitalization of R&D costs, followed by some reduction or reclassification.

Total Intangible Assets

The aggregate intangible assets demonstrate a descending trend from 16,782 million US$ in 2020 to 3,867 million US$ in 2023, followed by a robust rise to over 40,500 million US$ in 2024 and a slight decrease to 32,273 million US$ in 2025. This trend echoes the patterns seen across the component categories.

Total Goodwill and Intangible Assets

This consolidated figure decreases steadily from 60,229 million US$ in 2020 to 47,520 million US$ in 2023, then escalates dramatically to 138,456 million US$ in 2024 and slightly falls to 130,074 million US$ in 2025. This significant increase is consistent with the major increments in goodwill and intangible assets components and is indicative of extensive acquisition-related asset additions or revaluation events during the 2024 fiscal year.

Overall, the financial data suggests a period of relative stability in intangible asset balances through 2023, followed by a substantial expansion in 2024, most likely driven by sizable acquisitions or strategic revaluations. The post-2023 period reflects intensified investment or capitalization in purchased technology, customer contracts, and goodwill, effectively transforming the company's intangible asset base. Concurrently, accumulated amortization trends and fluctuating IPR&D values imply active management of asset lifecycles and research initiatives. The considerable rise in total goodwill and intangible assets underscores a pivotal shift in the company’s asset composition during the latest periods under review.

The financial data presents several notable trends in both reported and goodwill adjusted figures over the six-year period.

Total Assets

Reported total assets remained relatively stable from 2020 through 2023, fluctuating slightly between approximately $72 billion and $76 billion. A significant increase occurred in 2024 and 2025, with assets more than doubling to reach approximately $165.6 billion in 2024 and further growing to $171.1 billion in 2025.

In contrast, adjusted total assets showed a decreasing trend from 2020 to 2023, declining from about $32.5 billion to $29.2 billion. Similar to reported assets, adjusted assets then increased markedly in 2024 and 2025, approximately doubling to $67.8 billion and $73.3 billion, respectively.

Stockholders’ Equity

Reported stockholders’ equity showed a generally stable pattern from 2020 to 2023, with values ranging between $22.7 billion and $25 billion. Following this period, a substantial increase is observed in 2024 and 2025, reaching $67.7 billion and $81.3 billion, respectively.

Adjusted stockholders’ equity displayed negative values throughout the entire period, indicating accumulated goodwill or intangible asset adjustments reducing equity. These values were around -$19.6 billion to -$20.9 billion between 2020 and 2023, with a sharp decline to approximately -$30.2 billion in 2024. However, in 2025, adjusted equity improved significantly to about -$16.5 billion, suggesting a considerable reduction in goodwill adjustments or impairment reversals during that year.

Overall, the data suggests a major corporate event or acquisition occurred around 2024, as indicated by the sudden and substantial increase in both reported and adjusted asset and equity figures. The negative adjusted equity figures throughout the period highlight the impact of goodwill and intangible assets on the company's equity base, with some volatility especially in the last two years. This may reflect changes in impairment assessments or adjustments linked to business combinations. The improvement in adjusted equity in 2025 could signify better asset quality or successful integrations resulting in lower goodwill impairments.

The financial data demonstrates several notable trends regarding the company's efficiency, leverage, and profitability over the examined periods.

Total Asset Turnover

The reported total asset turnover ratio initially increased steadily from 0.31 in 2020 to a peak of 0.49 in 2023, indicating improved asset utilization. However, there was a decline to 0.31 in 2024 before a partial recovery to 0.37 in 2025. The adjusted total asset turnover, which accounts for goodwill adjustments, shows a consistently higher utilization, rising from 0.74 in 2020 to 1.23 in 2023, followed by a decrease to 0.76 and 0.87 in the latest two years. This pattern suggests that when excluding goodwill, the company’s asset efficiency was significantly stronger but also somewhat more volatile in the most recent years.

Financial Leverage

Reported financial leverage ratios fluctuated moderately from 3.18 in 2020 to 3.23 in 2022, with a slight decline to 3.04 in 2023 and more pronounced decreases thereafter, reaching 2.10 in 2025. This trend indicates a gradual reduction in the company's reliance on debt financing or financial obligations relative to equity over time. No adjusted financial leverage data is available to analyze leverage excluding goodwill impacts.

Return on Equity (ROE)

Reported ROE reveals significant volatility. It nearly doubled from 12.4% in 2020 to 27.0% in 2021, then sharply increased to 50.62% in 2022 and further to 58.7% in 2023, signaling substantial growth in shareholder returns during this period. However, a dramatic decline to 8.71% occurred in 2024, followed by a recovery to 28.45% in 2025. The absence of adjusted ROE data limits the assessment of the impact of goodwill on equity returns.

Return on Assets (ROA)

Reported ROA increased steadily from 3.9% in 2020 to 19.33% in 2023, indicating enhanced profitability relative to total assets. A sharp drop to 3.56% in 2024 was observed, followed by a rebound to 13.52% in 2025. Adjusted ROA figures, which exclude goodwill, are consistently higher than the reported values and follow a similar trajectory, rising from 9.11% in 2020 to a peak of 48.21% in 2023 before declining to 8.7% and 31.55% in the last two years. This suggests that asset profitability is significantly influenced by goodwill adjustments and fluctuates considerably in recent periods.

Overall, the data reflect a pattern of improving operational efficiency and profitability up to 2023, followed by notable volatility and declines in 2024, with some recovery in 2025. Asset turnover and return metrics adjusted for goodwill are consistently stronger than reported figures, indicating the substantial effect of goodwill on financial performance measurements. The gradual reduction in financial leverage may reflect strategic shifts toward lower financial risk or changes in capital structure.

The analysis of the financial data over the reported periods reveals several notable trends concerning total assets and asset turnover ratios.

Total Assets

The reported total assets remained relatively stable from November 2020 through October 2023, with values fluctuating slightly within the range of approximately $72.8 billion to $75.9 billion. However, there is a significant increase starting in November 2024, where reported total assets more than doubled to about $165.6 billion and continued to rise in November 2025 to approximately $171.1 billion.

Adjusted total assets, which exclude goodwill, show a downward trend from November 2020 through October 2023, declining from around $32.5 billion to $29.2 billion. Similar to the reported figures, a substantial increase is observed in November 2024 and November 2025, with adjusted assets jumping to roughly $67.8 billion and $73.3 billion, respectively. This indicates an increase in underlying asset values excluding goodwill in the latter periods.

Total Asset Turnover Ratios

The reported total asset turnover ratio exhibits an increasing trend from 0.31 in November 2020 to a peak of 0.49 in October 2023, indicating improved efficiency in utilizing assets to generate revenue during this period. However, this ratio declines sharply to 0.31 in November 2024, before a modest recovery to 0.37 in November 2025. This pattern suggests that asset utilization efficiency decreased significantly in the period corresponding to the large increase in total assets and has not yet fully recovered.

Adjusted total asset turnover ratios also demonstrate an upward trend from 0.74 in November 2020, rising steadily to 1.23 by October 2023. This reflects a marked improvement in asset utilization efficiency on an adjusted basis. Nevertheless, similar to the reported turnover, the ratio declines notably to 0.76 in November 2024 and then improves slightly to 0.87 in November 2025. Despite the downturn, the adjusted turnover remains above the initial values at the start of the period, indicating a generally better asset utilization after adjusting for goodwill.

In summary, the data shows stability and gradual improvement in asset efficiency from 2020 through 2023, followed by a dramatic increase in asset base and a reduction in asset turnover ratios beginning in November 2024. This may suggest large acquisitions or asset additions that temporarily impacted operational efficiency, with partial recovery observed by November 2025. Adjusted figures imply that underlying asset utilization remains more efficient than the reported figures alone might indicate, but also face challenges following the increase in asset base.

The analysis of the financial data over the reported periods indicates several notable trends related to assets, equity, and financial leverage.

Total Assets

Reported total assets remained relatively stable from 2020 through 2023, fluctuating slightly between approximately $72.8 billion and $75.9 billion. However, there was a significant increase starting in 2024, with total assets more than doubling to about $165.6 billion and continuing to rise to $171.1 billion in 2025. Adjusted total assets followed a similar trend but at lower absolute levels, declining steadily from roughly $32.5 billion in 2020 to about $29.2 billion in 2023 before sharply increasing to approximately $67.8 billion in 2024 and $73.3 billion in 2025.

Stockholders’ Equity

Reported stockholders’ equity showed minor fluctuations between 2020 and 2023, moving within the range of $22.7 billion to $24.9 billion, with no clear upward or downward trajectory. A marked increase occurred from 2024 onwards, with equity rising substantially to $67.7 billion in 2024 and further to $81.3 billion in 2025. In contrast, adjusted stockholders’ equity values were negative throughout all periods, ranging from approximately -$19.6 billion to -$30.2 billion, indicating significant goodwill or asset adjustments impacting shareholder equity negatively. Despite some variability, the adjusted equity remained deeply negative, reflecting the nature of the adjustments applied.

Financial Leverage

Reported financial leverage ratios fluctuated modestly between 3.18 and 3.04 from 2020 to 2023, suggesting a consistent degree of reliance on debt relative to equity during those years. From 2024 onward, there was a noticeable decline in the leverage ratio to 2.45 and further down to 2.10 in 2025, indicating a reduced leverage position and potentially a stronger equity base or lower relative debt.

Missing Adjusted Financial Leverage Data

The absence of adjusted financial leverage data suggests either unavailability or difficulty in calculating this ratio based on adjusted equity figures, which are negative and may not provide meaningful leverage metrics under typical calculation methods.

Overall, the company's reported financials demonstrate stable asset and equity bases with a significant expansion in later years, accompanied by a decline in financial leverage, implying strengthening capitalization. The adjusted figures reflect substantial goodwill or intangible asset adjustments that negatively impact equity and complicate leverage assessment on an adjusted basis.

The analysis of the financial data over the reported periods reveals notable fluctuations and trends in Broadcom Inc.’s stockholders' equity and return on equity (ROE). The reported stockholders’ equity, measured in millions of US dollars, shows an initial decrease from 23,874 in 2020 to 22,709 in 2022, followed by a slight recovery to 23,988 in 2023. A significant increase is observed in 2024, where equity jumps to 67,678 and continues to grow to 81,292 in 2025. This sharp rise in the later years suggests a substantial increase in the company's equity base that may be due to asset revaluation, capital infusion, or other equity transactions.

Contrastingly, the adjusted stockholders’ equity values, which appear to exclude goodwill or other adjustments, are negative throughout all periods. The values start at -19,573 million in 2020, slightly improve to -18,488 million in 2021, but then deteriorate again reaching -20,905 million in 2022 and somewhat improve to -19,665 million in 2023. A further decline is noted in 2024 to -30,195 million, before improving significantly to -16,509 million in 2025. The persistent negativity indicates that after adjustments, the company’s net asset value is below zero, which could reflect high goodwill impairments or intangible asset write-downs. The volatility in these values suggests fluctuations in intangible asset valuations or other adjustments impacting equity negatively.

Regarding the reported ROE, the data exhibits considerable volatility. It increases markedly from 12.4% in 2020 to 27.0% in 2021, then surges to above 50% in 2022 and 58.7% in 2023. Subsequently, there is a sharp decline to 8.71% in 2024, followed by a recovery to 28.45% in 2025. These swings indicate highly variable profitability relative to shareholders’ equity, possibly driven by changes in net income, equity adjustments, or extraordinary items influencing quarterly or annual earnings performance. The high ROE values in 2022 and 2023 suggest periods of exceptionally strong earnings relative to equity, whereas the drop in 2024 signifies a substantial decrease in profitability or an increase in equity that outpaced earnings.

No values were provided for adjusted ROE, preventing commentary on performance measures excluding goodwill or other adjustments.

Stockholders’ Equity Trends

Reported equity decreased until 2022, then rose sharply in 2024 and 2025, reflecting significant capital or asset changes.

Adjusted equity remained negative throughout, indicating that goodwill and other adjustments consistently reduce net equity below zero, with notable volatility.

Return on Equity (ROE) Trends

Reported ROE increased substantially from 2020 through 2023, followed by a significant decline in 2024 and a partial rebound in 2025, illustrating volatile profitability relative to equity.

Absence of adjusted ROE data limits further analysis on adjusted profitability metrics.

Overall Insights

The disparity between reported and adjusted equity highlights the impact of intangible asset valuations on the financial position.

Volatile ROE figures suggest the company's profitability and equity base are subject to significant changes year-over-year.

The financial data reveals distinct trends in both reported and goodwill adjusted metrics over the analyzed periods. Total assets, when reported without adjustments, remained relatively stable from 2020 through 2023, fluctuating slightly around the mid-70,000 million US$ range. However, there was a significant increase starting in 2024, with reported total assets more than doubling by 2025.

In contrast, adjusted total assets, which exclude goodwill, displayed a steadily declining trend from 2020 to 2023, decreasing from approximately 32,486 million US$ to 29,208 million US$. This was followed by a notable rise beginning in 2024, nearly doubling in value by 2025, paralleling the pattern seen in the reported total assets but on a smaller scale.

Return on assets (ROA) exhibited divergent patterns depending on whether reported or adjusted figures were considered. Reported ROA showed growth from 3.9% in 2020 to a peak of 19.33% in 2023, indicating improving profitability relative to total reported assets. However, there was a sharp decline in 2024 to 3.56%, before recovering to 13.52% in 2025.

The adjusted ROA followed a similar trajectory but at higher levels, starting at 9.11% in 2020 and peaking dramatically at 48.21% in 2023. This peak was followed by a significant drop to 8.7% in 2024, then a partial rebound to 31.55% in 2025. The higher adjusted ROA values imply that profitability is considerably stronger when goodwill is excluded from asset calculations.

Overall, the data suggests a period of asset base stability followed by rapid growth in the latter years, coupled with volatile profitability measures. The divergence between reported and adjusted figures highlights the impact of goodwill on total asset valuation and subsequent profitability metrics, with the adjusted figures offering a clearer view of operational performance excluding intangible asset effects.