Broadcom Inc. (NASDAQ:AVGO)

The analysis of the quarterly financial ratios reveals distinct trends in the company's asset and equity utilization over the observed periods.

Net Fixed Asset Turnover

This ratio shows a consistent and significant upward trend from 9.89 to 25.25 over the entire period, indicating increasingly efficient use of fixed assets to generate sales. Despite a slight dip around early 2024, the overall trajectory is positive, with particularly strong growth noted in the latter quarters, reflecting enhanced productivity or better asset management.

Total Asset Turnover

The total asset turnover ratio also demonstrates a general upward trend, increasing from 0.32 to a peak near 0.50 by late 2023, suggesting improved efficiency in utilizing all assets to generate revenue. However, early 2024 shows a marked decline to around 0.22, followed by a gradual recovery to 0.37 by late 2025, indicating some fluctuations in asset utilization efficiency during this mid-period.

Equity Turnover

The equity turnover ratio initially rises from 1.03 to approximately 1.61 through 2023, signaling effective use of shareholders' equity in driving sales growth. A sharp decrease occurs starting early 2024, dropping to about 0.55 before slowly recovering to around 0.79 by late 2025. This pattern indicates volatility in how equity is employed in revenue generation, potentially reflecting changes in equity base or sales dynamics during this timeframe.

Overall, the data suggest a strong improvement in fixed asset efficiency consistently over time, while total asset and equity turnovers exhibit more variability. The temporary declines observed in 2024 may point to external or internal factors affecting asset and equity deployment, though subsequent quarters indicate a partial rebound and stabilization in operational efficiency.

The data reveals several important trends related to revenue generation and asset utilization over the observed periods.

Net Revenue

Net revenue shows a generally increasing trajectory from January 2021 through November 2025. Beginning at approximately $6.7 billion in early 2021, revenue rises steadily with minor fluctuations until early 2023, where it records values close to $9 billion. From 2024 onward, the growth accelerates more markedly, reaching nearly $18 billion by late 2025. This pattern indicates robust revenue expansion, particularly pronounced in the latter part of the timeline.

Property, Plant, and Equipment (Net)

The net value of property, plant, and equipment exhibits a declining trend from about $2.5 billion in early 2021 down to approximately $2.15 billion toward late 2023. Post this period, the figure increases somewhat to around $2.7 billion in early 2024, followed by a gradual decline again through late 2025, stabilizing above $2.4 billion. Overall, this suggests an initial reduction in fixed assets, a brief phase of asset addition, then a slight decrease or stabilization in the asset base.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, defined as revenue divided by net fixed assets, shows a strong upward trend across the entire period. Starting near 9.9 in early 2021, the ratio rises steadily to approximately 16.6 by late 2023, indicating improved efficiency in generating revenue from fixed assets. After a minor dip in early 2024, the ratio continues a robust ascent, reaching over 25 by late 2025. The rising turnover ratio underscores enhanced operational efficiency and potentially more effective asset management or higher asset productivity.

In summary, the company demonstrates a consistent and accelerating increase in revenue alongside a relatively stable or slightly declining fixed asset base. This combination results in significantly improved fixed asset turnover ratios, highlighting improved efficiency in using property, plant, and equipment to generate sales. Such trends suggest a positive operational performance trajectory with increasing returns from capital assets over the analyzed periods.

The financial data reveals several key trends over the analyzed periods, focusing primarily on net revenue, total assets, and total asset turnover.

Net Revenue

Net revenue demonstrates a general upward trajectory across the entire timeframe. Starting in early 2021 at approximately 6.655 billion US dollars, net revenue steadily increases with minor fluctuations, reaching around 9.295 billion US dollars by late 2023. There is a notable acceleration in growth beginning in early 2024, where revenue sharply rises from approximately 11.961 billion to over 18 billion US dollars by late 2025. This indicates expanding sales or service activities, reflecting robust business growth in recent quarters.

Total Assets

Total assets remain relatively stable with minor decreases during 2021 and 2022, fluctuating around the 75 billion US dollar mark. However, a significant one-time increase occurs between late 2023 and early 2024, where total assets jump from around 72.861 billion to nearly 177.870 billion US dollars. Following this sharp increase, total assets experience a gradual decline over the subsequent quarters but remain substantially higher than the pre-2024 periods, stabilizing near 170 billion US dollars by late 2025. This sudden rise likely reflects a major acquisition, investment, or revaluation event impacting the asset base.

Total Asset Turnover

Total asset turnover, which measures the efficiency of using assets to generate revenue, initially trends upward from 0.32 in early 2021 to a peak of approximately 0.50 by mid-2023. This indicates an improving ability to generate sales from asset resources. However, post the asset base expansion in early 2024, the turnover ratio declines sharply to around 0.22, reflecting that the large increase in assets was not immediately matched by a proportional increase in revenue. Over subsequent quarters, total asset turnover improves gradually but remains below earlier peak levels, suggesting a period of adjustment as the company integrates new assets or shifts operational capacity.

In summary, net revenue exhibits strong growth through the period, especially accelerating after early 2024. Total assets remain steady initially, then jump significantly in early 2024 before stabilizing at a higher level. Total asset turnover improves steadily up to 2023, declines sharply following the asset increase, and then shows gradual recovery. This pattern suggests a substantial expansion in asset base coupled with continued revenue growth, albeit with an adjustment phase in asset utilization efficiency.

Net Revenue

The net revenue displays a generally upward trend over the observed periods. Starting around the mid-6000s in early 2021, revenue gradually increased through 2022 and 2023, reaching above 9000 million US dollars by late 2023. A more marked acceleration is observed from early 2024 onward, with revenue crossing 11,900 million and continuing to climb steadily, culminating near 18,000 million by late 2025. This sustained growth suggests expanding sales and possibly successful market strategies or product demand.

Stockholders’ Equity

Stockholders’ equity initially fluctuates moderately around the 23,000 million mark during 2021 and 2022, with a slight downward drift observed until mid-2022. From late 2023 to early 2024, there is a significant jump to levels above 70,000 million, which then stabilizes around this higher range with a modest upward trend through to late 2025. Such a substantial increase may indicate major equity issuances, retained earnings accumulation, or significant adjustments in asset valuation during this period.

Equity Turnover Ratio

The equity turnover ratio starts slightly above 1.0 in early 2021 and trends upwards, peaking around mid-2023 at approximately 1.61. This indicates increasing efficiency in generating revenue from equity. However, a sharp decline follows in early 2024, dropping below 0.6, and then gradually recovers to around 0.79 by late 2025. This decline coincides with the large increase in stockholders’ equity, suggesting that while equity grew substantially, revenue did not increase proportionally during that interval, leading to a temporary decrease in turnover efficiency before partial recovery.

Overall Insights

The company demonstrates strong revenue growth throughout the period, particularly pronounced from 2024 forward. The large increase in stockholders’ equity around the same time appears to affect the equity turnover ratio negatively, reflecting a change in capital structure or accounting treatment. Despite this, the equity turnover shows signs of recovery by the end of the period, implying improved utilization of equity capital. The data points to solid operational performance alongside significant shifts in equity financing or asset base within the analyzed timeframe.