Analysis of Geographic Areas
Broadcom Inc. operates in 2 regions: United States and Foreign countries.
Area Asset Turnover
Broadcom Inc., asset turnover by geographic area
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | |
|---|---|---|---|---|---|---|
| United States | 7.65 | 5.09 | 4.10 | 3.43 | 2.88 | 2.40 |
| Foreign countries | 46.28 | 36.84 | 34.90 | 27.43 | 22.48 | 22.90 |
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).
- United States Asset Turnover Ratio
- The asset turnover ratio in the United States shows a consistent upward trend over the six-year period. Beginning at 2.4 in late 2019, the ratio increases steadily each year, reaching 7.65 by November 2024. Notably, the growth accelerates in the latter years, particularly from 5.09 in late 2023 to 7.65 in late 2024, indicating enhanced efficiency in asset utilization within the U.S. market.
- Foreign Countries Asset Turnover Ratio
- For foreign countries, the asset turnover ratio also demonstrates continuous growth but at a different scale compared to the U.S. Starting at a high ratio of 22.9 in late 2019, it experiences a slight dip to 22.48 in 2020, followed by a significant increase in subsequent years, reaching 46.28 by late 2024. The ratio nearly doubles over the analyzed period, with notable increments between 2021 and 2024, suggesting rising efficiency or expansion of operations in foreign markets.
- Comparative Insights
- Although the foreign countries' asset turnover ratio remains substantially higher than that of the United States throughout the period, both regions exhibit positive trends. The foreign countries show a larger magnitude of turnover, which could be indicative of different operational scales, market dynamics, or business models. The sharper increase in the later years for both regions may reflect strategic initiatives focused on improving asset productivity across geographic areas.
Area Asset Turnover: United States
Broadcom Inc.; United States; area asset turnover calculation
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 12,887) | 6,975) | 5,915) | 5,285) | 4,778) | 4,235) |
| Long-lived assets | 1,685) | 1,371) | 1,441) | 1,540) | 1,659) | 1,763) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 7.65 | 5.09 | 4.10 | 3.43 | 2.88 | 2.40 |
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).
1 2024 Calculation
Area asset turnover = Net revenue ÷ Long-lived assets
= 12,887 ÷ 1,685 = 7.65
The analysis of the annual data for the United States geographic area reveals several notable trends over the time periods observed.
- Net Revenue
- There is a consistent upward trend in net revenue from US$4,235 million in 2019 to US$12,887 million in 2024. This represents a substantial growth, with particular acceleration seen between 2023 and 2024, where revenue nearly doubled from US$6,975 million to US$12,887 million. This indicates strong expansion in sales or market presence within this geographic area.
- Long-lived Assets
- Long-lived assets display a declining trend from US$1,763 million in 2019 to US$1,371 million in 2023, with a slight uptick to US$1,685 million in 2024. This overall decrease suggests a reduction in the asset base over the initial periods, potentially due to divestitures, depreciation, or efficiency improvements, followed by a modest increase in the final year.
- Area Asset Turnover Ratio
- The asset turnover ratio shows a strong and steady increase throughout the timeframe, rising from 2.4 in 2019 to 7.65 in 2024. This implies significantly improved efficiency in utilizing long-lived assets to generate revenue. The rising ratio, particularly the sharp increase in 2024, aligns with the revenue growth and indicates enhanced asset productivity or better asset management over time.
Overall, the data suggest a dynamic growth environment in this geographic segment, characterized by increasing revenues and improving asset utilization, despite a reduction and later stabilization in long-lived assets. The sharp increase in the asset turnover ratio highlights a marked improvement in operational efficiency over the observed periods.
Area Asset Turnover: Foreign countries
Broadcom Inc.; Foreign countries; area asset turnover calculation
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Net revenue | 38,687) | 28,844) | 27,288) | 22,165) | 19,110) | 18,362) |
| Long-lived assets | 836) | 783) | 782) | 808) | 850) | 802) |
| Area Activity Ratio | ||||||
| Area asset turnover1 | 46.28 | 36.84 | 34.90 | 27.43 | 22.48 | 22.90 |
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).
1 2024 Calculation
Area asset turnover = Net revenue ÷ Long-lived assets
= 38,687 ÷ 836 = 46.28
- Net Revenue
- The net revenue generated from foreign countries displays a consistent upward trend over the six-year period. Starting at $18,362 million in 2019, the revenue increased steadily each year, reaching $38,687 million by 2024. This represents more than a doubling of net revenue, indicating strong growth in international sales or operations.
- Long-Lived Assets
- Long-lived assets in foreign countries show relative stability throughout the period. The values fluctuate slightly, starting at $802 million in 2019, peaking at $850 million in 2020, followed by a decline to around the $780 million range from 2021 to 2023, and then a modest increase to $836 million in 2024. Overall, the asset base has remained largely unchanged with minor variations, suggesting limited expansion in physical or capital assets abroad.
- Area Asset Turnover
- The asset turnover ratio, measuring efficiency in using assets to generate revenue, exhibits a strong positive trend. The ratio increased from 22.9 in 2019 to 46.28 in 2024, more than doubling over the period. This indicates that the company has substantially improved its ability to generate revenue from its existing asset base in foreign regions, reflecting enhanced operational efficiency or a shift toward higher revenue-generating activities without proportionally increasing assets.
- Summary
- The combination of rapidly increasing net revenue alongside stable long-lived assets and significantly improved asset turnover suggests that the company has successfully expanded its foreign revenue through more efficient use of its asset base. Rather than growing the asset base substantially, the company appears to have leveraged existing assets more effectively, resulting in greater revenue productivity in international markets. This trend demonstrates a robust growth strategy focused on operational efficiency and strong revenue growth abroad.
Net revenue
Broadcom Inc., net revenue by geographic area
US$ in millions
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | |
|---|---|---|---|---|---|---|
| United States | 12,887) | 6,975) | 5,915) | 5,285) | 4,778) | 4,235) |
| Foreign countries | 38,687) | 28,844) | 27,288) | 22,165) | 19,110) | 18,362) |
| Total | 51,574) | 35,819) | 33,203) | 27,450) | 23,888) | 22,597) |
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).
- United States Revenue Trend
- The net revenue from the United States exhibited consistent growth over the six-year period. Starting at 4,235 million US dollars in 2019, it increased steadily each year, reaching 12,887 million US dollars by 2024. Notably, the growth rate accelerated between 2023 and 2024, with revenue nearly doubling in this one-year span.
- Foreign Countries Revenue Trend
- Revenues from foreign countries also showed a clear upward trajectory. Beginning at 18,362 million US dollars in 2019, revenues increased annually, reaching 38,687 million US dollars in 2024. Similar to the United States segment, the most significant growth occurred between 2023 and 2024, with a substantial increase in net revenue.
- Total Revenue Trend
- Total net revenue, combining both domestic and foreign sources, grew consistently throughout the period. The total rose from 22,597 million US dollars in 2019 to 51,574 million US dollars in 2024. The largest increment was observed in the latest year, reflecting an accelerated overall growth rate largely driven by both geographic segments, particularly the United States.
- Comparative Analysis: United States vs. Foreign Countries
- Throughout the years, revenue from foreign countries consistently exceeded that from the United States. However, the United States segment grew at a faster relative pace in the most recent year, reducing the gap between the two geographies. Both segments demonstrated robust growth, but the growth surge in the United States revenue in the last year is especially notable.
- General Insights
- The data reveals a strong and sustained increase in net revenues across all geographic areas. The consistent upward pattern indicates successful market penetration and expansion strategies. The pronounced acceleration in revenue growth in the latest year suggests potentially new factors such as market conditions, company initiatives, or external economic influences contributing to boosted financial performance.
Long-lived assets
Broadcom Inc., long-lived assets by geographic area
US$ in millions
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | |
|---|---|---|---|---|---|---|
| United States | 1,685) | 1,371) | 1,441) | 1,540) | 1,659) | 1,763) |
| Foreign countries | 836) | 783) | 782) | 808) | 850) | 802) |
| Total | 2,521) | 2,154) | 2,223) | 2,348) | 2,509) | 2,565) |
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).
- United States Long-Lived Assets
- The value of long-lived assets in the United States exhibits a generally declining trend from 2019 to 2023, decreasing from $1,763 million to $1,371 million. This represents an approximate 22% reduction over the five-year span. However, in 2024, there is a notable rebound with the value increasing to $1,685 million, surpassing the 2019 level.
- Foreign Countries Long-Lived Assets
- Long-lived assets located in foreign countries show a relatively stable pattern with minor fluctuations. The value increased from $802 million in 2019 to $850 million in 2020, followed by a gradual decrease to $782 million in 2022. The value then slightly increased to $783 million in 2023 and continued with a modest rise to $836 million in 2024. Overall, the foreign asset base demonstrates resilience with limited volatility compared to the United States segment.
- Total Long-Lived Assets
- The aggregate long-lived assets decline steadily from $2,565 million in 2019 to $2,154 million in 2023, reflecting a cumulative decrease of approximately 16%. This decline mirrors the reduction seen primarily in the United States segment, as the foreign assets remain comparatively stable. In 2024, the total long-lived assets recover significantly to $2,521 million, nearing the 2019 level. This recovery is driven mainly by the increased valuation of domestic assets.
- Summary of Trends
- Overall, the data indicate a downward trend in long-lived assets over the initial five-year period, predominantly influenced by decreases in assets within the United States. The foreign assets maintain a steadier value with less fluctuation. The notable recovery in 2024 suggests potential reinvestment or revaluation efforts focused on domestic long-lived assets, positively impacting the total asset base.