Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Broadcom Inc., profitability ratios
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
| 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
| 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
| 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
| 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
| 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. |