Broadcom Inc. (NASDAQ:AVGO)

The analysis of the annual financial data reveals several notable trends in profitability, equity growth, and return on equity over the observed periods.

Net Income (Loss)

Net income figures exhibit substantial volatility throughout the period. Starting with a significant loss of -44 million USD, the company quickly shifted to positive earnings, with values rising to a peak of 13,642 million USD in 2015 after a notable loss in 2016 of -1,739 million USD. Following this fluctuation, a general upward trend can be observed, with net income reaching a high point of 14,082 million USD in 2023. However, dips occurred again in subsequent years, with 2024 showing a decreased profit of 5,895 million USD and a strong recovery to 23,126 million USD in 2025. These variations suggest periods of operational challenges and significant turnaround performance.

Stockholders’ Equity

Stockholders’ equity demonstrates a consistent and strong growth trajectory. Initial equity was 1,040 million USD in 2009, gradually increasing each year with exceptional jumps in 2016 and continuing substantial gains through 2025, reaching 81,292 million USD. This steady increase reflects accumulation of retained earnings and possibly capital infusions or asset revaluations, indicating a strengthening financial base and possibly expansion.

Return on Equity (ROE)

The ROE percentages exhibit considerable oscillations, indicating changing efficiency and profitability relative to equity. Early periods show a shift from negative (-4.23% in 2009) to strong positive returns, peaking several times above 20% and notably reaching as high as 58.7% in 2023. Some years reveal negative or weak ROE values (e.g., -9.2% in 2016, and 8.71% in 2024), coinciding with losses or reduced net income. The high ROE values in the later years indicate effective utilization of equity to generate profits, despite intermittent setbacks.

Overall, the data highlights a company that has experienced significant fluctuations in profitability but has managed to grow its equity substantially. The efficiency of equity utilization, as captured by ROE, shows periods of both challenge and strong performance, suggesting strategic responses to market or operational conditions that have allowed recovery and growth. The pronounced equity base combined with episodes of strong profitability points toward an improving financial position in the long term despite short-term volatility.