Broadcom Inc. (NASDAQ:AVGO)

Net Fixed Asset Turnover

The net fixed asset turnover ratio exhibits a consistent upward trend from the initial available data point at 8.81 to a peak of 23.17 by the May 2025 period. Starting from the values in early 2020, the ratio generally rises quarter over quarter with only minor fluctuations, indicating increasingly efficient use of fixed assets to generate revenue. Notably, after a gradual increase from 8.81 through mid-2023, there is a slight dip to 14.6 in early 2024, followed by a sharp recovery and accelerated growth toward the later periods, suggesting a temporary decline in asset utilization efficiency which was quickly corrected leading to stronger performance.

Total Asset Turnover

The total asset turnover ratio shows a slow, steady improvement from 0.33 in early 2020 up to 0.5 by late 2023. This gradual increase signifies better overall asset utilization to produce sales. However, in the periods corresponding to early and mid-2024, a marked decrease occurs, dropping to a low near 0.22. Following this dip, the ratio recovers moderately to 0.35 by mid-2025, but remains below the previous peak. This pattern indicates some challenges in total asset efficiency during early 2024, with partial recovery evident in subsequent periods.

Equity Turnover

The equity turnover ratio steadily increases from 0.91 in early 2020 to a high around 1.61 by mid-2023, reflecting improved effectiveness in generating sales relative to equity. Similar to total asset turnover, there is a notable and sharp decline beginning in late 2023 and continuing into early 2024, dropping to 0.55, which is considerably below previous levels. The ratio then shows a gradual upward trajectory, reaching 0.82 by mid-2025, indicating a partial rebound in equity utilization but not a full return to former performance. This suggests a period of reduced equity efficiency that impacted sales generation efficiency during the earlier part of 2024.

Net Revenue

The net revenue demonstrates an overall upward trend from February 2019 through May 2025. Starting at approximately $5.8 billion, revenue experienced some fluctuations in the early periods, with slight decreases and modest increases through 2020. From 2021 onward, there is a consistent and more pronounced growth trajectory, with quarterly revenues climbing from roughly $6.6 billion in early 2021 to about $15 billion by mid-2025. This indicates strengthening sales or market expansion over the period of analysis.

Property, Plant and Equipment, Net

The net value of property, plant, and equipment shows a steady decline from $2.68 billion in early 2019 to approximately $2.15 billion by the end of 2020. This decline continues through 2023, reaching a low near $2.15 billion to $2.16 billion. Notably, there is a significant increase back to around $2.66 billion in early 2024, followed by a gradual decrease again toward $2.46 billion by mid-2025. This pattern suggests periods of asset disposals or depreciation offset by some reinvestment or acquisition after late 2023.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures the efficiency of fixed assets in generating revenue, shows a clear upward trend starting from the earliest available point in the data. Beginning around 8.81 in mid-2019, the ratio steadily increases each quarter, reaching approximately 23.17 by mid-2025. This consistent growth implies improved utilization of fixed assets over time, signifying enhanced operational efficiency or productive capacity relative to the asset base.

Summary of Trends and Insights

The financial data exhibits a pattern of increasing revenue with improving asset efficiency as evidenced by the rising net fixed asset turnover ratio. The asset base itself, as reflected by net property, plant, and equipment, shows some fluctuations with an overall downward trend interrupted by a notable increase in early 2024, possibly reflecting strategic asset investments or acquisitions. The improving turnover ratio alongside rising revenues suggests that the company is generating increasing sales volumes without a proportionate expansion in fixed assets, indicating operational leveraging and efficiency gains.

The financial data reveals several notable trends over the periods from early 2019 through mid-2025. The net revenue demonstrates a generally upward trajectory, starting at approximately 5,789 million US dollars in February 2019 and increasing steadily, with some minor fluctuations, to reach over 15,000 million US dollars by May 2025. This indicates consistent growth in revenue generation, with some acceleration evident particularly from the year 2023 onwards.

Total assets display a different pattern. Initially, there is a decline from about 72,110 million US dollars in early 2019 to a low point near 67,493 million by late 2019. Following this, total assets rise sharply in early 2020 to over 81,000 million but then experience a gradual decline through 2022 and 2023. A significant jump occurs starting in early 2024 when total assets increase abruptly to nearly 178,000 million, before trending slightly downward yet remaining elevated through mid-2025. This suggests a significant acquisition or capital investment event around 2024, substantially expanding the asset base.

The total asset turnover ratio shows improvement over time. Beginning with data available only from August 2019 at 0.33, it decreases slightly over early 2020 but then trends steadily upward, reaching a peak of 0.50 by early 2023. This rising ratio implies enhanced efficiency in using assets to generate revenue. However, following a sharp increase in total assets in early 2024, the turnover ratio decreases to about 0.22, likely reflecting that the asset base has grown faster than revenue immediately following the event in 2024. Subsequent quarters show a gradual recovery in the turnover ratio, climbing back to 0.35 by mid-2025, indicating improving operational efficiency after asset expansion.

Overall, the data indicates sustained revenue growth supported by varying asset base trends, including a major asset increase in 2024. The efficiency of asset utilization improves steadily except for the period immediately after the asset increase, which temporarily reduced turnover before a gradual normalization.

Net Revenue

Consistent growth from approximately 5,789 million to over 15,000 million US dollars over the analyzed periods.

Total Assets

Initial decline until late 2019, followed by recovery and stabilization, then a significant jump in early 2024 to nearly 178,000 million, with slight decreases thereafter.

Total Asset Turnover

Improved steadily from 0.33 in mid-2019 to 0.50 in early 2023; decreased sharply during early 2024 asset surge; gradual recovery to 0.35 by mid-2025.

Net Revenue

Over the observed periods, net revenue shows a general upward trajectory, starting around $5,789 million in early 2019 and steadily increasing to approximately $15,004 million by mid-2025. The data reflects consistent growth, with occasional minor fluctuations in quarterly values but an overall strong expansion in revenue. Notably, beginning in early 2021, the growth rate appears to accelerate, with revenues increasing from about $6,655 million to nearly $15,000 million over roughly four years. This suggests effective sales performance or successful market expansion during this timeframe.

Stockholders’ Equity

Stockholders’ equity displays some variability but remains relatively stable for a substantial portion of the timeline relative to net revenue changes. Starting around $23,224 million in early 2019, equity values decline slightly through mid-2022, reaching a low point near $20,876 million. From this point, equity begins to recover and increases gradually to about $23,988 million by late 2023. However, a significant upward jump occurs beginning in early 2024, where equity rises sharply to values above $69,000 million. This sudden increase may indicate a major capital infusion, issuance of equity, or revaluation. After this jump, equity levels off but maintain high values through mid-2025.

Equity Turnover Ratio

The equity turnover ratio exhibits an increasing trend from early 2019 through 2023, rising from approximately 0.91 to a peak of about 1.61 in late 2023. This suggests improving efficiency in generating revenue relative to shareholder equity during this period. Post-2023, the ratio declines significantly to around 0.55 by early 2024 and then gradually recovers to 0.82 by mid-2025. The sharp drop corresponds with the sharp increase in equity, implying that revenue growth did not immediately match the surge in equity, lowering the turnover ratio. The subsequent recovery indicates a partial improvement in utilizing the expanded equity to generate revenue.

Overall Insights

The company has experienced strong revenue growth throughout the period with a particularly notable acceleration starting in 2021. Equity levels remained stable or declined slightly before a substantial increase in early 2024. This equity jump likely impacted the equity turnover ratio, which initially improved before a sharp decline and partial recovery. This pattern may reflect strategic financial events such as equity issuance or revaluation, potentially aimed at supporting ongoing growth initiatives. The trends suggest increasing operational scale and evolving capital structure, with recent years marked by changes likely intended to bolster financial capacity for continued expansion.