Common-Size Income Statement
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- Balance Sheet: Liabilities and Stockholders’ Equity
- Cash Flow Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Long-term (Investment) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Selected Financial Data since 2009
- Total Asset Turnover since 2009
- Price to Sales (P/S) since 2009
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Broadcom Inc., common-size consolidated income statement
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).
- Revenue Composition
- There has been a notable shift in revenue composition over the analyzed periods. The share of net revenue derived from products decreased significantly from 80.17% in 2019 to 58.86% in 2024, while subscriptions and services increased from 19.83% to 41.14%. This shift indicates a strategic move towards recurring revenue streams.
- Cost of Revenue
- The total cost of revenue as a percentage of net revenue declined from -44.76% in 2019 to a low of -31.07% in 2023, indicating improved cost efficiency during this period. However, in 2024 it increased to -36.97%. Costs related to products sold showed a consistent decrease, reaching -19% in 2024, while costs associated with subscriptions and services increased to -5.8%, reflecting the higher revenue proportion from this segment. Amortization of acquisition-related intangible assets displayed fluctuations, decreasing substantially until 2023 and spiking again in 2024.
- Gross Margin
- Gross margin improved progressively from 55.24% in 2019 to a peak of 68.93% in 2023, before declining to 63.03% in 2024. This overall upward trend aligns with the decreasing cost of revenue and increased revenue from higher-margin subscription services, despite the recent decline.
- Operating Expenses
- Operating expenses as a percentage of net revenue decreased sharply from 40% in 2019 to 23.68% in 2023, indicating enhanced operational efficiency. However, these expenses rose noticeably to 36.93% in 2024. Both research and development and selling, general, and administrative expenses followed similar trends, decreasing until 2023 and then increasing in the latest period. Amortization and restructuring charges also contributed variably to operating expenses, with amortization trends generally declining before increasing again in 2024, and restructuring charges mostly minimal but more pronounced in 2024.
- Operating Income
- Operating income showed a significant increase from 15.24% in 2019 to 45.25% in 2023, reflecting improved profitability and operational performance. In 2024, operating income dropped to 26.1%, consistent with higher operating expenses and increased amortization costs.
- Net Interest and Other Income/Expense
- Interest expense decreased steadily from -6.39% to -4.53% by 2023 but increased to -7.66% in 2024, indicating higher financing costs in the latest period. Interest income remained low but increased in 2023 before dropping slightly. Other income and gains/losses from investments and other expenses remained minimal throughout the periods, with small fluctuations affecting net income marginally.
- Income Before and After Taxes
- Income from continuing operations before income taxes rose markedly from 9.85% in 2019 to 42.15% in 2023, then declined to 19.23% in 2024. The provision for income taxes was positive in early years but turned negative from 2021 onwards, reaching -7.27% in 2024, which suggests tax charges reduced net income in the latest period.
- Net Income and Earnings Attributable to Common Stock
- Net income followed a similar upward trend as operating income and income before taxes, increasing from 12.05% in 2019 to 39.31% in 2023 before a sharp decline to 11.43% in 2024. The net income attributable to common stock mirrored these fluctuations. Losses from discontinued operations were negligible except for a -0.53% impact in 2024.
- Dividends on Preferred Stock
- Dividends on preferred stock were relatively small but increased notably in 2020 (-1.24%) before declining again and missing data in 2024.
- Overall Analysis
- Overall, the financial data reveals sustained improvements in profitability and margin expansion up to 2023, supported by a strategic shift towards subscription and service revenue, cost efficiencies, and effective operating expense management. However, the year 2024 shows a reversal in several key metrics, including a reduction in product revenue share, increased costs particularly amortization and interest expense, higher operating expenses, and lower net income. This indicates emerging challenges affecting profitability and cost structure in the most recent period.