Stock Analysis on Net

Broadcom Inc. (NASDAQ:AVGO)

Analysis of Profitability Ratios 

Microsoft Excel LibreOffice Calc

Profitability Ratios (Summary)

Broadcom Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016
Return on Sales
Gross profit margin 61.36% 56.58% 55.24% 51.48% 48.25% 44.86%
Operating profit margin 31.03% 16.80% 15.24% 24.63% 13.51% -3.09%
Net profit margin 24.54% 12.39% 12.05% 58.80% 9.59% -13.13%
Return on Investment
Return on equity (ROE) 26.99% 12.40% 10.92% 45.99% 8.34% -9.20%
Return on assets (ROA) 8.91% 3.90% 4.04% 24.46% 3.11% -3.48%

Based on: 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Broadcom Inc. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Broadcom Inc. operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Broadcom Inc. net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Broadcom Inc. ROE improved from 2019 to 2020 and from 2020 to 2021.
ROA A profitability ratio calculated as net income divided by total assets. Broadcom Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.

Gross Profit Margin

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

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Gross margin 16,844  13,516  12,483  10,733  8,509  5,940 
Net revenue 27,450  23,888  22,597  20,848  17,636  13,240 
Profitability Ratio
Gross profit margin1 61.36% 56.58% 55.24% 51.48% 48.25% 44.86%
Benchmarks
Gross Profit Margin, Competitors2
Advanced Micro Devices Inc. 48.25% 44.53% 42.61% 37.79% 34.21%
Analog Devices Inc. 61.83% 65.87% 67.00% 68.27% 59.94% 65.10%
Applied Materials Inc. 47.32% 44.72% 43.72% 45.31% 44.93% 41.67%
Intel Corp. 55.45% 56.01% 58.56% 61.73% 62.25%
Lam Research Corp. 46.53% 45.88% 45.15% 46.63% 44.97% 44.49%
Micron Technology Inc. 37.62% 30.57% 45.72% 58.87% 41.51% 20.20%
NVIDIA Corp. 62.34% 61.99% 61.21% 59.93% 58.80%
Qualcomm Inc. 57.51% 60.67% 64.57% 54.94% 56.07% 58.61%
Texas Instruments Inc. 67.47% 64.10% 63.71% 65.11% 64.26%

Based on: 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30).

1 2021 Calculation
Gross profit margin = 100 × Gross margin ÷ Net revenue
= 100 × 16,844 ÷ 27,450 = 61.36%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Broadcom Inc. gross profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Operating Profit Margin

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

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Operating income (loss) 8,519  4,014  3,444  5,135  2,383  (409)
Net revenue 27,450  23,888  22,597  20,848  17,636  13,240 
Profitability Ratio
Operating profit margin1 31.03% 16.80% 15.24% 24.63% 13.51% -3.09%
Benchmarks
Operating Profit Margin, Competitors2
Advanced Micro Devices Inc. 22.20% 14.02% 9.37% 6.97% 3.83%
Analog Devices Inc. 23.12% 26.74% 28.55% 30.35% 20.66% 30.05%
Applied Materials Inc. 29.87% 25.37% 22.93% 27.80% 26.61% 19.88%
Intel Corp. 24.62% 30.41% 30.62% 32.91% 28.58%
Lam Research Corp. 30.64% 26.62% 25.53% 29.01% 23.74% 18.25%
Micron Technology Inc. 22.68% 14.01% 31.51% 49.34% 28.88% 1.35%
NVIDIA Corp. 27.18% 26.07% 32.47% 33.05% 27.99%
Qualcomm Inc. 29.16% 26.58% 31.59% 3.26% 11.73% 27.57%
Texas Instruments Inc. 48.84% 40.76% 39.79% 42.53% 40.66%
Operating Profit Margin, Sector
Semiconductors & Semiconductor Equipment 28.10% 25.89% 28.35% 30.50% 24.65%
Operating Profit Margin, Industry
Information Technology 29.60% 26.04% 26.82% 27.42% 25.02%

Based on: 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30).

1 2021 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Net revenue
= 100 × 8,519 ÷ 27,450 = 31.03%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Broadcom Inc. operating profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Net Profit Margin

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

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Broadcom Inc. stockholders 6,736  2,960  2,724  12,259  1,692  (1,739)
Net revenue 27,450  23,888  22,597  20,848  17,636  13,240 
Profitability Ratio
Net profit margin1 24.54% 12.39% 12.05% 58.80% 9.59% -13.13%
Benchmarks
Net Profit Margin, Competitors2
Advanced Micro Devices Inc. 19.24% 25.50% 5.07% 5.20% 0.81%
Analog Devices Inc. 19.00% 21.79% 22.75% 24.12% 14.24% 25.18%
Applied Materials Inc. 25.53% 21.04% 18.52% 19.20% 23.62% 15.90%
Intel Corp. 25.14% 26.84% 29.25% 29.72% 15.30%
Lam Research Corp. 26.72% 22.42% 22.70% 21.49% 21.19% 15.53%
Micron Technology Inc. 21.16% 12.54% 26.97% 46.51% 25.04% -2.23%
NVIDIA Corp. 25.98% 25.61% 35.34% 31.37% 24.11%
Qualcomm Inc. 26.94% 22.09% 18.07% -21.40% 11.06% 24.22%
Texas Instruments Inc. 42.35% 38.69% 34.88% 35.35% 24.61%
Net Profit Margin, Sector
Semiconductors & Semiconductor Equipment 25.72% 23.15% 24.46% 27.79% 16.92%
Net Profit Margin, Industry
Information Technology 26.11% 22.23% 23.17% 19.61% 18.55%

Based on: 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30).

1 2021 Calculation
Net profit margin = 100 × Net income (loss) attributable to Broadcom Inc. stockholders ÷ Net revenue
= 100 × 6,736 ÷ 27,450 = 24.54%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Broadcom Inc. net profit margin ratio improved from 2019 to 2020 and from 2020 to 2021.

Return on Equity (ROE)

Broadcom Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Broadcom Inc. stockholders 6,736  2,960  2,724  12,259  1,692  (1,739)
Total Broadcom Inc. stockholders’ equity 24,962  23,874  24,941  26,657  20,285  18,892 
Profitability Ratio
ROE1 26.99% 12.40% 10.92% 45.99% 8.34% -9.20%
Benchmarks
ROE, Competitors2
Advanced Micro Devices Inc. 42.18% 42.66% 12.06% 26.62% 7.04%
Analog Devices Inc. 3.66% 10.17% 11.64% 13.61% 7.16% 16.68%
Applied Materials Inc. 48.08% 34.21% 32.94% 48.44% 36.73% 23.85%
Intel Corp. 20.83% 25.79% 27.16% 28.24% 13.91%
Lam Research Corp. 64.85% 43.53% 46.89% 36.62% 24.90% 15.51%
Micron Technology Inc. 13.34% 6.89% 17.59% 43.77% 27.33% -2.28%
NVIDIA Corp. 25.64% 22.91% 44.33% 40.78% 28.91%
Qualcomm Inc. 90.88% 85.54% 89.35% -524.14% 8.02% 17.95%
Texas Instruments Inc. 58.27% 60.90% 56.33% 62.04% 35.62%
ROE, Sector
Semiconductors & Semiconductor Equipment 25.34% 24.26% 26.59% 33.28% 16.56%
ROE, Industry
Information Technology 40.02% 33.11% 34.56% 30.73% 23.48%

Based on: 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30).

1 2021 Calculation
ROE = 100 × Net income (loss) attributable to Broadcom Inc. stockholders ÷ Total Broadcom Inc. stockholders’ equity
= 100 × 6,736 ÷ 24,962 = 26.99%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Broadcom Inc. ROE improved from 2019 to 2020 and from 2020 to 2021.

Return on Assets (ROA)

Broadcom Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Broadcom Inc. stockholders 6,736  2,960  2,724  12,259  1,692  (1,739)
Total assets 75,570  75,933  67,493  50,124  54,418  49,966 
Profitability Ratio
ROA1 8.91% 3.90% 4.04% 24.46% 3.11% -3.48%
Benchmarks
ROA, Competitors2
Advanced Micro Devices Inc. 25.46% 27.78% 5.66% 7.40% 1.21%
Analog Devices Inc. 2.66% 5.69% 6.37% 7.31% 3.44% 10.81%
Applied Materials Inc. 22.80% 16.19% 14.22% 18.64% 17.68% 11.80%
Intel Corp. 11.80% 13.65% 15.42% 16.45% 7.79%
Lam Research Corp. 24.59% 15.47% 18.26% 19.08% 14.00% 7.45%
Micron Technology Inc. 9.96% 5.01% 12.91% 32.59% 14.40% -1.00%
NVIDIA Corp. 15.05% 16.15% 31.15% 27.11% 16.93%
Qualcomm Inc. 21.93% 14.60% 13.31% -14.88% 3.77% 10.90%
Texas Instruments Inc. 31.48% 28.91% 27.84% 32.56% 20.87%
ROA, Sector
Semiconductors & Semiconductor Equipment 13.48% 11.77% 13.37% 17.39% 8.31%
ROA, Industry
Information Technology 14.67% 11.57% 12.31% 10.99% 8.99%

Based on: 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01), 10-K (reporting date: 2019-11-03), 10-K (reporting date: 2018-11-04), 10-K (reporting date: 2017-10-29), 10-K (reporting date: 2016-10-30).

1 2021 Calculation
ROA = 100 × Net income (loss) attributable to Broadcom Inc. stockholders ÷ Total assets
= 100 × 6,736 ÷ 75,570 = 8.91%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Broadcom Inc. ROA deteriorated from 2019 to 2020 but then improved from 2020 to 2021 exceeding 2019 level.