Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
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Liquidity Ratios (Summary)
Broadcom Inc., liquidity ratios
| Nov 2, 2025 | Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Current ratio | |||||||
| Quick ratio | |||||||
| Cash ratio |
Based on: 10-K (reporting date: 2025-11-02), 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).
- Current Ratio
- The current ratio demonstrated an overall fluctuating trend over the observed periods. It increased from 1.87 to a peak of 2.82 by October 29, 2023, indicating an improvement in short-term liquidity during this interval. However, a significant decline followed, with the ratio falling to 1.17 by November 3, 2024, before partially recovering to 1.71 in the subsequent year. This pattern suggests a temporary weakening in the company's ability to cover current liabilities around 2024, followed by some restoration of liquidity.
- Quick Ratio
- The quick ratio showed a similar trajectory to the current ratio, increasing from 1.56 at the beginning to 2.34 by October 29, 2023. This upward movement signifies enhanced ability to meet short-term obligations with more liquid assets excluding inventory. Nevertheless, a substantial decrease occurred in the following period, dropping to 0.82, the lowest point in the dataset, before improving to 1.26. This decline points to a potential reduction in highly liquid assets or an increase in current liabilities.
- Cash Ratio
- The cash ratio initially rose steadily from 1.20 to 1.92 across the first four periods, reflecting a strong cash position relative to current liabilities. Subsequently, there was a marked drop to 0.56 by November 3, 2024, the lowest ratio observed, indicating a significant decrease in cash and cash equivalents relative to liabilities. This was followed by a moderate increase to 0.87 in the final period, showing partial cash replenishment or liability reduction.
- Overall Liquidity Analysis
- The company's liquidity ratios showcased improvement up to late 2023, suggesting stronger short-term financial health and better capacity to settle obligations promptly. The pronounced declines across all three ratios in 2024 indicate a notable reduction in liquidity and cash sufficiency, potentially due to increased liabilities or decreased liquid assets. The recovery in 2025, although not reaching earlier peaks, points to management efforts to stabilize liquidity positions.
Current Ratio
Broadcom Inc., current ratio calculation, comparison to benchmarks
| Nov 2, 2025 | Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Current ratio1 | |||||||
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| Micron Technology Inc. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
| Current Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | |||||||
| Current Ratio, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-11-02), 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).
1 2025 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The current assets of the company demonstrate a generally increasing trend over the analyzed periods. Starting at approximately 11.9 billion US dollars, the figure rose steadily year-over-year, reaching around 20.8 billion by late 2023. Despite a slight decline observed in early November 2024, current assets then surged significantly to approximately 31.6 billion US dollars in 2025. This upward trend indicates growing liquidity and possibly an expansion of short-term resources.
- Current Liabilities
- Current liabilities remained relatively stable between 2020 and 2023, fluctuating modestly around 6.3 to 7.4 billion US dollars. However, a sharp increase occurred in November 2024, where liabilities more than doubled to roughly 16.7 billion. This elevated level was maintained and slightly increased into 2025, reaching approximately 18.5 billion US dollars. The significant rise in short-term obligations in this period points to increased financial commitments or operational expenses.
- Current Ratio
- The current ratio, which measures the company's ability to cover short-term liabilities with short-term assets, improved from 1.87 in 2020 to a peak near 2.82 by 2023, indicating strong liquidity. However, a marked decline occurred in 2024, with the ratio dropping to 1.17, reflecting the disproportionate increase in current liabilities relative to assets. A partial recovery followed in 2025, with the ratio improving to 1.71 but remaining below the earlier peaks. This fluctuation suggests some strain on liquidity during 2024, with a moderate stabilization thereafter.
Quick Ratio
Broadcom Inc., quick ratio calculation, comparison to benchmarks
| Nov 2, 2025 | Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | |||||||
| Trade accounts receivable, net | |||||||
| Total quick assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Quick ratio1 | |||||||
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| Micron Technology Inc. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
| Quick Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | |||||||
| Quick Ratio, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-11-02), 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).
1 2025 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Quick Assets Trend
- The total quick assets demonstrated an overall upward trend over the analyzed periods, increasing from $9,915 million in 2020 to $23,323 million in 2025. Between 2020 and 2023, there was a steady rise, followed by a slight decline in 2024, and then a significant recovery in 2025.
- Current Liabilities Trend
- Current liabilities showed a relatively stable pattern initially, ranging from $6,371 million in 2020 to $7,405 million in 2023. However, in 2024, there was a notable surge to $16,697 million, which further increased to $18,514 million in 2025.
- Quick Ratio Analysis
- The quick ratio improved from 1.56 in 2020 to a peak of 2.34 in 2023, reflecting enhanced liquidity during this period. This was followed by a marked decline to 0.82 in 2024, indicating a potential liquidity constraint. A partial recovery to 1.26 occurred in 2025, though the ratio remained below earlier years' levels.
- Overall Financial Position Insights
- Despite growth in quick assets, the sharp increase in current liabilities starting in 2024 led to a significant deterioration in the quick ratio, pointing to possible increased short-term obligations or decreased liquidity efficiency. The partial rebound in the quick ratio in 2025 suggests some improvement in liquidity management, though it remains below the strong position observed between 2021 and 2023.
Cash Ratio
Broadcom Inc., cash ratio calculation, comparison to benchmarks
| Nov 2, 2025 | Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Cash and cash equivalents | |||||||
| Total cash assets | |||||||
| Current liabilities | |||||||
| Liquidity Ratio | |||||||
| Cash ratio1 | |||||||
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| Micron Technology Inc. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
| Cash Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | |||||||
| Cash Ratio, Industry | |||||||
| Information Technology | |||||||
Based on: 10-K (reporting date: 2025-11-02), 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).
1 2025 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Total Cash Assets
- The total cash assets exhibit a general upward trend over the analyzed periods, increasing from $7,618 million in 2020 to $16,178 million in 2025. Despite this overall growth, there is a noticeable dip in 2024, where cash assets decline to $9,348 million from the previous year's $14,189 million. This drop may indicate a period of higher expenditures or investments before cash reserves recover strongly in 2025.
- Current Liabilities
- Current liabilities remain relatively stable between 2020 and 2023, fluctuating narrowly around $6,300 to $7,400 million. However, starting in 2024, there is a significant increase to $16,697 million, continuing to rise to $18,514 million in 2025. This sharp increase in current liabilities suggests a substantial rise in short-term obligations or accrued liabilities during the last two years of the period analyzed.
- Cash Ratio
- The cash ratio, reflecting the company's liquidity position, shows an initial increase from 1.20 in 2020 to a peak of 1.94 in 2021, followed by a slight decline but remaining above 1.70 until 2023, indicating strong liquidity. In 2024, the ratio drops sharply to 0.56, denoting a period where cash assets cover only slightly more than half of current liabilities, which coincides with the noted surge in current liabilities and reduced cash assets. The ratio improves somewhat to 0.87 in 2025 but does not return to prior higher levels, pointing to a relatively more constrained liquidity situation compared to earlier years.