Broadcom Inc. (NASDAQ:AVGO)

The financial data indicates several significant trends in the company's capital structure over the analyzed period.

Long-term Debt

The long-term debt remains relatively low and stable in the early years, with a notable presence recorded at US$594 million in 2009 and dropping to US$230 million in 2010. From 2011 to 2013, data are unavailable, but in 2014 there is a sharp increase to US$5,509 million. Following this spike, the long-term debt fluctuates, rising substantially from 2015 onwards. It peaks notably in 2024 at US$67,566 million, indicating a significant increase in debt financing over the last decade.

Stockholders’ Equity

Stockholders’ equity has shown consistent growth across the full range of years reported. Starting from US$1,040 million in 2009, it steadily increased over time with occasional fluctuations. A marked jump occurs around 2016, where equity rises sharply from US$4,714 million in 2015 to US$18,892 million in 2016, maintaining levels above US$20 billion in subsequent years. The equity reaches its highest point in 2024 at US$67,678 million, reflecting a substantial increase in the company's net asset base.

Debt to Equity Ratio

The debt to equity ratio demonstrates volatility and a general upward trend through the majority of the timeline. It starts at 0.57 in 2009, drops to a low of 0.15 in 2010, then data is missing until 2014. Beginning in 2014, the ratio rises to 1.7, suggesting the company took on more debt relative to equity. From 2014 through 2023, the ratio fluctuates around values between 0.66 and 1.74, indicating varying degrees of leverage but staying above 1 for most of these years. By 2024, the ratio decreases to 1, signaling a potential shift toward a more balanced capital structure than in previous years.

Overall, the company exhibits a strategy involving increased leverage over the long term, as reflected in the rising absolute values of long-term debt and relatively high debt to equity ratios from 2014 onwards. At the same time, equity growth also remains strong, especially post-2015, suggesting an expansion of the company's asset base and possibly improved retained earnings or capital inflows. The decreasing debt to equity ratio in the final year may indicate a recent management focus on deleveraging or equity strengthening.