Stock Analysis on Net

Broadcom Inc. (NASDAQ:AVGO)

Financial Reporting Quality: Aggregate Accruals 

Microsoft Excel

Balance-Sheet-Based Accruals Ratio

Broadcom Inc., balance sheet computation of aggregate accruals

US$ in millions

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
Operating Assets
Total assets 72,861 73,249 75,570 75,933 67,493 50,124
Less: Cash and cash equivalents 14,189 12,416 12,163 7,618 5,055 4,292
Operating assets 58,672 60,833 63,407 68,315 62,438 45,832
Operating Liabilities
Total liabilities 48,873 50,540 50,581 52,032 42,523 23,467
Less: Current portion of long-term debt 1,608 440 290 827 2,787
Less: Long-term debt, excluding current portion 37,621 39,075 39,440 40,235 30,011 17,493
Operating liabilities 9,644 11,025 10,851 10,970 9,725 5,974
 
Net operating assets1 49,028 49,808 52,556 57,345 52,713 39,858
Balance-sheet-based aggregate accruals2 (780) (2,748) (4,789) 4,632 12,855
Financial Ratio
Balance-sheet-based accruals ratio3 -1.58% -5.37% -8.72% 8.42% 27.77%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Advanced Micro Devices Inc. 2.36% 169.75% 8.05% 72.69%
Analog Devices Inc. 0.03% -2.94% 90.70% -2.85% 0.29%
Applied Materials Inc. 0.48% 20.73% 17.33% 3.75% 19.87%
Enphase Energy Inc. 14.60% 10.88% 107.62% 49.59%
Intel Corp. 13.69% 10.73% 11.61% 0.01%
KLA Corp. 3.95% 21.25% 3.62% -4.49% 126.76%
Lam Research Corp. 2.85% 36.00% 21.20% 12.45% -6.77%
Micron Technology Inc. 0.78% 12.07% 11.51% 7.56% 11.13%
NVIDIA Corp. 18.88% 28.31% 115.40% -16.93%
ON Semiconductor Corp. 28.41% 2.63% 6.18% -1.23%
Qualcomm Inc. -5.53% 68.49% 22.56% 20.94% 48.90%
Texas Instruments Inc. 31.37% 22.75% 18.48% 1.00%
Balance-Sheet-Based Accruals Ratio, Sector
Semiconductors & Semiconductor Equipment 6.77% 24.63% 19.61% 4.44% 200.00%
Balance-Sheet-Based Accruals Ratio, Industry
Information Technology 9.17% 21.78% 21.37% 2.88% 200.00%

Based on: 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), 10-K (reporting date: 2018-11-04).

1 2023 Calculation
Net operating assets = Operating assets – Operating liabilities
= 58,6729,644 = 49,028

2 2023 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2023 – Net operating assets2022
= 49,02849,808 = -780

3 2023 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -780 ÷ [(49,028 + 49,808) ÷ 2] = -1.58%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Broadcom Inc. improved earnings quality from 2022 to 2023.

Cash-Flow-Statement-Based Accruals Ratio

Broadcom Inc., cash flow statement computation of aggregate accruals

US$ in millions

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
Net income attributable to Broadcom Inc. stockholders 14,082 11,495 6,736 2,960 2,724 12,259
Less: Net cash provided by operating activities 18,085 16,736 13,764 12,061 9,697 8,880
Less: Net cash used in investing activities (689) (667) (245) (11,109) (15,422) (4,674)
Cash-flow-statement-based aggregate accruals (3,314) (4,574) (6,783) 2,008 8,449 8,053
Financial Ratio
Cash-flow-statement-based accruals ratio1 -6.71% -8.94% -12.34% 3.65% 18.25%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Advanced Micro Devices Inc. 1.17% -15.28% 8.10% 83.38%
Analog Devices Inc. -0.57% -2.54% -11.85% -3.72% -3.61%
Applied Materials Inc. -2.05% 18.18% 14.75% -0.54% -1.09%
Enphase Energy Inc. 19.99% 5.12% 345.34% -52.29%
Intel Corp. 11.35% 2.75% 15.15% 6.75%
KLA Corp. 3.66% 18.30% 9.27% -7.11% 45.10%
Lam Research Corp. -1.72% 13.82% 5.16% 9.16% 16.67%
Micron Technology Inc. -2.52% 11.37% 10.01% 5.45% 9.74%
NVIDIA Corp. -47.90% 73.13% 233.25% -225.09%
ON Semiconductor Corp. 25.59% -0.40% 2.32% -3.27%
Qualcomm Inc. -14.57% 46.91% 15.61% 48.48% -30.37%
Texas Instruments Inc. 26.35% 28.24% 29.95% 4.03%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Semiconductors & Semiconductor Equipment 0.94% 7.32% 12.55% 3.48% 15.39%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Information Technology 1.26% 3.82% 10.83% -8.37% -22.13%

Based on: 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), 10-K (reporting date: 2018-11-04).

1 2023 Calculation
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -3,314 ÷ [(49,028 + 49,808) ÷ 2] = -6.71%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Broadcom Inc. improved earnings quality from 2022 to 2023.