Broadcom Inc. (NASDAQ:AVGO)

The analysis of the financial data reveals several notable trends in asset composition over the periods observed.

Cash and Cash Equivalents

This category initially exhibits an increasing trend, rising from 10.03% of total assets in 2020 to a peak of 19.47% in 2023. However, it then declines sharply to 5.64% in 2024 before partially recovering to 9.46% in 2025, indicating fluctuations in liquidity positions across the years.

Trade Accounts Receivable, Net

The proportion of trade receivables as a percentage of total assets experiences moderate variability, starting at 3.03% in 2020, dipping slightly, then rising to 4.33% in 2023. After a decrease to 2.67% in 2024, it increases again to 4.18% in 2025, reflecting some fluctuations in credit sales or collection efficiency.

Inventory

Inventory holdings show an upward movement from 1.32% in 2020 up to 2.63% in 2022, followed by a marginal decline towards 1.06% in 2024 and a slight increase to 1.33% in 2025. This pattern suggests adjustments in stock levels possibly aligned with operational demands or supply chain considerations.

Current Portion of Contract Assets

Data for this item is absent prior to 2023, after which it appears and increases significantly from 0.68% in 2023 to 2.93% in 2025, indicating growing recognition of contract-related assets within current assets.

Prepaid Expenses

This category rises from 0.51% in 2020 to 1.18% in 2022 before gradually declining to 0.3% by 2025, reflecting possible changes in payment structures or expense forecasting methods.

Other and Other Current Assets

The 'Other' current assets category steadily decreases from 0.78% to 0.27%, while 'Other current assets' overall increase from 1.29% in 2020 to 3.5% in 2025, indicating a shift and reclassification or increased recognition of miscellaneous current assets.

Total Current Assets

Total current assets rise significantly from 15.67% in 2020, reaching a high of 28.61% in 2023, before dropping sharply to 11.83% in 2024 and partially recovering to 18.45% in 2025. This volatility suggests substantial changes in short-term asset management or liquidity strategies.

Property, Plant, and Equipment, Net

Investment in fixed assets declines steadily from 3.3% of total assets in 2020 to 1.48% in 2025, possibly indicating reduced capital expenditure or asset disposals.

Goodwill

Goodwill remains the largest single asset component, maintaining a consistent level above 57%, peaking near 59.91% in 2023 before a slight decrease in the subsequent years. This stability suggests sustained value from past acquisitions or intangible goodwill factors.

Intangible Assets, Net

Intangible assets exhibit a decrease from 22.1% in 2020 to 5.31% in 2023, followed by a sharp increase to 24.5% in 2024 and a slight decline thereafter. This significant fluctuation could reflect revaluation, amortization, or new capitalization related to intangible investments.

Other Long-Term Assets

Other long-term assets show an upward trend from 1.71% in 2020 to 4.04% in 2025, demonstrating incremental growth in non-core or miscellaneous long-term holdings.

Total Long-Term Assets

The overall share of long-term assets decreases from 84.33% in 2020 to 71.39% in 2023 but then rises markedly to 88.17% in 2024 before decreasing again to 81.55% in 2025, indicating changes in asset structure with potential rebalancing between short- and long-term holdings.

In summary, the asset structure across the periods shows significant shifts in liquidity and intangible assets, with notable fluctuations in cash, intangibles, and current assets. The persistent dominance of goodwill underscores a focus on acquired assets. The variations in other asset categories suggest active management of asset composition in response to operational and strategic considerations.