Broadcom Inc. (AVGO)

Annual Data

Quarterly Data

Profitability ratios measure the company's ability to generate profitable sales from its resources (assets).

Broadcom Inc., profitability ratios

	Oct 29, 2017	Oct 30, 2016	Nov 1, 2015	Nov 2, 2014	Nov 3, 2013	Oct 28, 2012
Return on Sales
Gross profit margin	%	%	%	%	%	%
Operating profit margin	%	%	%	%	%	%
Net profit margin	%	%	%	%	%	%
Return on Investment
Return on equity (ROE)	%	%	%	%	%	%
Return on assets (ROA)	%	%	%	%	%	%

Source: Based on data from Broadcom Inc. Annual Reports

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	Broadcom Inc.'s gross profit margin deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Broadcom Inc.'s operating profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Broadcom Inc.'s net profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.
ROE	A profitability ratio calculated as net income divided by shareholders' equity.	Broadcom Inc.'s ROE deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.
ROA	A profitability ratio calculated as net income divided by total assets.	Broadcom Inc.'s ROA deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

Broadcom Inc., gross profit margin calculation

	Oct 29, 2017	Oct 30, 2016	Nov 1, 2015	Nov 2, 2014	Nov 3, 2013	Oct 28, 2012
Selected Financial Data (USD $ in millions)
Gross margin
Net revenue
Ratio
Gross profit margin¹	%	%	%	%	%	%
Benchmarks
Gross Profit Margin, Competitors
Apple Inc.	%	%	%	%	%	%
Applied Materials Inc.	%	%	%	%	%	%
Cisco Systems Inc.	%	%	%	%	%	%
HP Inc.	%	%	%	%	%	%
Intel Corp.	%	%	%	%	%	%
NVIDIA Corp.	%	%	%	%	%	%
Qualcomm Inc.	%	%	%	%	%	%
Texas Instruments Inc.	%	%	%	%	%	%

Source: Based on data from Broadcom Inc. Annual Reports

2017 Calculations

¹ Gross profit margin = 100 × Gross margin ÷ Net revenue
= 100 × hidden ÷ hidden = hidden %

Ratio	Description	The company
Gross profit margin	Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures.	Broadcom Inc.'s gross profit margin deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

Broadcom Inc., operating profit margin calculation, comparison to benchmarks

	Oct 29, 2017	Oct 30, 2016	Nov 1, 2015	Nov 2, 2014	Nov 3, 2013	Oct 28, 2012
Selected Financial Data (USD $ in millions)
Operating income (loss)
Net revenue
Ratio
Operating profit margin¹	%	%	%	%	%	%
Benchmarks
Operating Profit Margin, Competitors
Apple Inc.	%	%	%	%	%	%
Applied Materials Inc.	%	%	%	%	%	%
Cisco Systems Inc.	%	%	%	%	%	%
HP Inc.	%	%	%	%	%	%
Intel Corp.	%	%	%	%	%	%
NVIDIA Corp.	%	%	%	%	%	%
Qualcomm Inc.	%	%	%	%	%	%
Texas Instruments Inc.	%	%	%	%	%	%
Operating Profit Margin, Sector
Technology Hardware & Equipment	%	%	%	%	%	%
Operating Profit Margin, Industry
Technology	%	%	%	%	%	%

Source: Based on data from Broadcom Inc. Annual Reports

2017 Calculations

¹ Operating profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × hidden ÷ hidden = hidden %

Ratio	Description	The company
Operating profit margin	A profitability ratio calculated as operating income divided by revenue.	Broadcom Inc.'s operating profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.

Broadcom Inc., net profit margin calculation, comparison to benchmarks

	Oct 29, 2017	Oct 30, 2016	Nov 1, 2015	Nov 2, 2014	Nov 3, 2013	Oct 28, 2012
Selected Financial Data (USD $ in millions)
Net income (loss) attributable to ordinary shares
Net revenue
Ratio
Net profit margin¹	%	%	%	%	%	%
Benchmarks
Net Profit Margin, Competitors
Apple Inc.	%	%	%	%	%	%
Applied Materials Inc.	%	%	%	%	%	%
Cisco Systems Inc.	%	%	%	%	%	%
HP Inc.	%	%	%	%	%	%
Intel Corp.	%	%	%	%	%	%
NVIDIA Corp.	%	%	%	%	%	%
Qualcomm Inc.	%	%	%	%	%	%
Texas Instruments Inc.	%	%	%	%	%	%
Net Profit Margin, Sector
Technology Hardware & Equipment	%	%	%	%	%	%
Net Profit Margin, Industry
Technology	%	%	%	%	%	%

Source: Based on data from Broadcom Inc. Annual Reports

2017 Calculations

¹ Net profit margin = 100 × Net income (loss) attributable to ordinary shares ÷ Net revenue
= 100 × hidden ÷ hidden = hidden %

Ratio	Description	The company
Net profit margin	An indicator of profitability, calculated as net income divided by revenue.	Broadcom Inc.'s net profit margin deteriorated from 2015 to 2016 but then improved from 2016 to 2017 not reaching 2015 level.

Broadcom Inc., ROE calculation, comparison to benchmarks

	Oct 29, 2017	Oct 30, 2016	Nov 1, 2015	Nov 2, 2014	Nov 3, 2013	Oct 28, 2012
Selected Financial Data (USD $ in millions)
Net income (loss) attributable to ordinary shares
Total Broadcom Inc. stockholders’ equity
Ratio
ROE¹	%	%	%	%	%	%
Benchmarks
ROE, Competitors
Apple Inc.	%	%	%	%	%	%
Applied Materials Inc.	%	%	%	%	%	%
Cisco Systems Inc.	%	%	%	%	%	%
HP Inc.	%	%	%	%	%	%
Intel Corp.	%	%	%	%	%	%
NVIDIA Corp.	%	%	%	%	%	%
Qualcomm Inc.	%	%	%	%	%	%
Texas Instruments Inc.	%	%	%	%	%	%
ROE, Sector
Technology Hardware & Equipment	%	%	%	%	%	%
ROE, Industry
Technology	%	%	%	%	%	%

Source: Based on data from Broadcom Inc. Annual Reports

2017 Calculations

¹ ROE = 100 × Net income (loss) attributable to ordinary shares ÷ Total Broadcom Inc. stockholders’ equity
= 100 × hidden ÷ hidden = hidden %

Ratio	Description	The company
ROE	A profitability ratio calculated as net income divided by shareholders' equity.	Broadcom Inc.'s ROE deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

Broadcom Inc., ROA calculation, comparison to benchmarks

	Oct 29, 2017	Oct 30, 2016	Nov 1, 2015	Nov 2, 2014	Nov 3, 2013	Oct 28, 2012
Selected Financial Data (USD $ in millions)
Net income (loss) attributable to ordinary shares
Total assets
Ratio
ROA¹	%	%	%	%	%	%
Benchmarks
ROA, Competitors
Apple Inc.	%	%	%	%	%	%
Applied Materials Inc.	%	%	%	%	%	%
Cisco Systems Inc.	%	%	%	%	%	%
HP Inc.	%	%	%	%	%	%
Intel Corp.	%	%	%	%	%	%
NVIDIA Corp.	%	%	%	%	%	%
Qualcomm Inc.	%	%	%	%	%	%
Texas Instruments Inc.	%	%	%	%	%	%
ROA, Sector
Technology Hardware & Equipment	%	%	%	%	%	%
ROA, Industry
Technology	%	%	%	%	%	%

Source: Based on data from Broadcom Inc. Annual Reports

2017 Calculations

¹ ROA = 100 × Net income (loss) attributable to ordinary shares ÷ Total assets
= 100 × hidden ÷ hidden = hidden %

Ratio	Description	The company
ROA	A profitability ratio calculated as net income divided by total assets.	Broadcom Inc.'s ROA deteriorated from 2015 to 2016 but then slightly improved from 2016 to 2017.

	Broadcom Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

	All companies
Financial Statements
Common-Size Financial Statements
Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis
Financial Reporting Quality

Profitability Analysis