Stock Analysis on Net
Stock Analysis on Net

Broadcom Inc. (NASDAQ:AVGO)

Common-Size Balance Sheet: Assets 

Broadcom Inc., common-size consolidated balance sheet: assets

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Nov 3, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019
Cash and cash equivalents 5.64 19.47 16.95 16.10 10.03 7.49
Trade accounts receivable, net 2.67 4.33 4.04 2.74 3.03 4.83
Inventory 1.06 2.60 2.63 1.72 1.32 1.29
Current portion of contract assets 1.16 0.68 0.00 0.00 0.00 0.00
Prepaid expenses 0.84 1.02 1.18 0.71 0.51 0.45
Other 0.46 0.50 0.47 0.68 0.78 0.63
Other current assets 2.46% 2.20% 1.65% 1.40% 1.29% 1.08%
Current assets 11.83% 28.61% 25.26% 21.95% 15.67% 14.69%
Property, plant and equipment, net 1.52 2.96 3.03 3.11 3.30 3.80
Goodwill 59.09 59.91 59.54 57.50 57.22 54.40
Intangible assets, net 24.50 5.31 9.71 15.05 22.10 26.01
Other long-term assets 3.06 3.21 2.45 2.40 1.71 1.10
Long-term assets 88.17% 71.39% 74.74% 78.05% 84.33% 85.31%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03).

The financial data exhibits notable shifts in the composition of assets over the periods analyzed. The proportion of current assets relative to total assets showed an increasing trend from 14.69% in 2019 to a peak of 28.61% in 2023, followed by a substantial decline to 11.83% in 2024. Within current assets, cash and cash equivalents increased steadily from 7.49% to 19.47% between 2019 and 2023, but sharply decreased to 5.64% in 2024. Trade accounts receivable and inventory percentages remained relatively low and exhibited minor fluctuations, with trade receivables declining overall from 4.83% to 2.67% and inventory varying modestly before dropping to near 1.06% in 2024.

Prepaid expenses and other current assets showed a gradual increase, indicating potential growth in prepayments and miscellaneous current asset categories, although prepaid expenses slightly decreased in the final period. The introduction of the current portion of contract assets as a new category in 2023 and 2024, rising from 0.68% to 1.16%, suggests a recognition of contract-related short-term assets.

Regarding long-term assets, a consistent decline was evident from 85.31% in 2019 to a low of 71.39% in 2023, before rebounding sharply to 88.17% in 2024. This fluctuation was influenced primarily by changes in intangible assets and property, plant, and equipment (PPE). Intangible assets declined significantly from 26.01% in 2019 to 5.31% in 2023, then rose markedly to 24.5% in 2024, indicating potentially large amortization or disposals followed by revaluation or acquisitions. PPE exhibited a gradual decrease throughout the period from 3.8% to 1.52%, reflecting possible asset disposals, depreciation, or lower investment in fixed assets.

Goodwill remained the dominant component of total assets, representing over half of the asset base in all periods and increasing from 54.4% in 2019 to a peak of 59.91% in 2023, slightly reducing to 59.09% in 2024. This sustained high proportion suggests significant past acquisitions and an ongoing strategic emphasis on intangible value.

Other long-term assets increased moderately from 1.1% to over 3% by the final years, contributing to the long-term asset composition.

Overall, the data suggests a strategic asset structure characterized by significant intangible assets and goodwill, with fluctuating liquidity levels as evidenced by variable cash holdings and current assets. The sharp decline in current assets and cash equivalents in the latest period should be monitored for implications on working capital and operational liquidity. The rise in intangible assets in 2024 might indicate renewed investment or reclassification within the balance sheet, potentially altering asset quality and composition.