Microsoft Excel LibreOffice Calc

Broadcom Inc. (NASDAQ:AVGO)


Analysis of Short-term (Operating) Activity Ratios

Beginner level


Short-term Activity Ratios (Summary)

Broadcom Inc., short-term (operating) activity ratios

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Turnover Ratios
Inventory turnover 11.57 9.00 6.31 5.21 6.24 4.61
Receivables turnover 6.93 6.27 7.20 6.07 6.70 5.46
Payables turnover 11.83 12.47 8.26 5.79 5.30 4.64
Working capital turnover 7.49 3.08 1.33 3.27 2.57 1.51
Average No. Days
Average inventory processing period 32 41 58 70 58 79
Add: Average receivable collection period 53 58 51 60 55 67
Operating cycle 85 99 109 130 113 146
Less: Average payables payment period 31 29 44 63 69 79
Cash conversion cycle 54 70 65 67 44 67

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Broadcom Inc.’s inventory turnover ratio improved from 2017 to 2018 and from 2018 to 2019.
Receivables turnover An activity ratio equal to revenue divided by receivables. Broadcom Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Broadcom Inc.’s payables turnover ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Broadcom Inc.’s working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Broadcom Inc.’s number of days of inventory outstanding improved from 2017 to 2018 and from 2018 to 2019.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Broadcom Inc.’s number of days of receivables outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Broadcom Inc.’s operating cycle improved from 2017 to 2018 and from 2018 to 2019.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Broadcom Inc.’s number of days of payables outstanding decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Broadcom Inc.’s cash conversion cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.

Inventory Turnover

Broadcom Inc., inventory turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Selected Financial Data (US$ in millions)
Cost of revenue 10,114  10,115  9,127  7,300  3,271  2,392 
Inventory 874  1,124  1,447  1,400  524  519 
Short-term Activity Ratio
Inventory turnover1 11.57 9.00 6.31 5.21 6.24 4.61
Benchmarks
Inventory Turnover, Competitors2
Advanced Micro Devices Inc. 3.93 4.77 4.74 4.36 4.29
Apple Inc. 39.40 41.39 29.05 61.62 59.64 53.18
Applied Materials Inc. 2.37 2.54 2.73 3.08 3.11 3.34
Cisco Systems Inc. 13.91 10.14 11.00 15.03 11.97 12.18
Intel Corp. 3.41 3.74 3.39 4.18 4.00
Micron Technology Inc. 2.48 3.48 3.81 3.42 4.69 4.45
NVIDIA Corp. 2.89 4.89 3.59 5.26 4.31
Qualcomm Inc. 6.14 6.05 4.81 6.27 6.96 7.33
Texas Instruments Inc. 2.61 2.48 2.73 2.87 3.22
Inventory Turnover, Sector
Technology Hardware & Equipment 8.91 9.81 8.80 10.97 12.15
Inventory Turnover, Industry
Technology 12.91 13.04 11.93 14.19 14.37

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 2019 Calculation
Inventory turnover = Cost of revenue ÷ Inventory
= 10,114 ÷ 874 = 11.57

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Broadcom Inc.’s inventory turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Receivables Turnover

Broadcom Inc., receivables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Selected Financial Data (US$ in millions)
Net revenue 22,597  20,848  17,636  13,240  6,824  4,269 
Trade accounts receivable, net 3,259  3,325  2,448  2,181  1,019  782 
Short-term Activity Ratio
Receivables turnover1 6.93 6.27 7.20 6.07 6.70 5.46
Benchmarks
Receivables Turnover, Competitors2
Advanced Micro Devices Inc. 3.62 5.24 13.32 13.74 7.49
Apple Inc. 11.35 11.45 12.82 13.69 13.87 10.47
Applied Materials Inc. 5.77 6.73 6.22 4.75 5.55 5.43
Cisco Systems Inc. 9.45 8.88 9.33 8.42 9.20 9.14
Intel Corp. 9.40 10.54 11.19 12.66 11.56
Micron Technology Inc. 8.43 6.01 5.82 7.02 7.40 6.48
NVIDIA Corp. 8.23 7.68 8.37 9.92 9.88
Qualcomm Inc. 23.21 7.98 6.23 10.74 13.02 11.21
Texas Instruments Inc. 13.39 13.08 11.71 10.55 11.16
Receivables Turnover, Sector
Technology Hardware & Equipment 10.03 9.61 10.28 11.06 11.59
Receivables Turnover, Industry
Technology 7.50 7.59 7.76 8.15 8.71

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 2019 Calculation
Receivables turnover = Net revenue ÷ Trade accounts receivable, net
= 22,597 ÷ 3,259 = 6.93

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Broadcom Inc.’s receivables turnover ratio deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Payables Turnover

Broadcom Inc., payables turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Selected Financial Data (US$ in millions)
Cost of revenue 10,114  10,115  9,127  7,300  3,271  2,392 
Accounts payable 855  811  1,105  1,261  617  515 
Short-term Activity Ratio
Payables turnover1 11.83 12.47 8.26 5.79 5.30 4.64
Benchmarks
Payables Turnover, Competitors2
Advanced Micro Devices Inc. 3.91 7.63 9.13 7.44 10.43
Apple Inc. 3.50 2.93 2.88 3.52 3.95 3.72
Applied Materials Inc. 8.58 9.47 8.47 7.77 8.67 8.53
Cisco Systems Inc. 9.34 9.83 12.84 17.32 17.64 18.77
Intel Corp. 7.23 7.09 8.09 9.37 10.02
Micron Technology Inc. 7.58 7.39 8.92 8.34 10.76 9.76
NVIDIA Corp. 8.89 6.53 5.87 7.43 7.10
Qualcomm Inc. 6.29 5.61 4.97 5.25 7.98 4.90
Texas Instruments Inc. 13.45 11.52 11.47 12.95 14.09
Payables Turnover, Sector
Technology Hardware & Equipment 4.46 3.87 3.88 4.60 5.11
Payables Turnover, Industry
Technology 5.49 4.77 4.77 5.39 5.70

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 2019 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 10,114 ÷ 855 = 11.83

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Broadcom Inc.’s payables turnover ratio increased from 2017 to 2018 but then slightly decreased from 2018 to 2019.

Working Capital Turnover

Broadcom Inc., working capital turnover calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Selected Financial Data (US$ in millions)
Current assets 9,917  9,107  15,823  7,125  3,775  3,835 
Less: Current liabilities 6,899  2,338  2,529  3,078  1,119  1,016 
Working capital 3,018  6,769  13,294  4,047  2,656  2,819 
 
Net revenue 22,597  20,848  17,636  13,240  6,824  4,269 
Short-term Activity Ratio
Working capital turnover1 7.49 3.08 1.33 3.27 2.57 1.51
Benchmarks
Working Capital Turnover, Competitors2
Advanced Micro Devices Inc. 3.01 4.16 4.69 3.61 4.35
Apple Inc. 4.56 18.35 8.24 7.74 26.66 35.96
Applied Materials Inc. 2.54 2.58 1.65 2.29 1.77 2.19
Cisco Systems Inc. 3.24 1.42 0.86 0.92 0.93 1.00
Intel Corp. 8.06 5.83 5.20 3.91 2.24
Micron Technology Inc. 2.31 2.95 2.85 2.66 3.45 3.01
NVIDIA Corp. 1.27 1.20 1.02 1.35 0.97
Qualcomm Inc. 3.10 3.70 0.68 1.50 1.58 1.62
Texas Instruments Inc. 2.17 2.81 2.31 2.57 2.88
Working Capital Turnover, Sector
Technology Hardware & Equipment 3.95 4.77 2.57 2.99 3.34
Working Capital Turnover, Industry
Technology 2.41 2.23 1.72 1.90 2.12

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 2019 Calculation
Working capital turnover = Net revenue ÷ Working capital
= 22,597 ÷ 3,018 = 7.49

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Broadcom Inc.’s working capital turnover ratio improved from 2017 to 2018 and from 2018 to 2019.

Average Inventory Processing Period

Broadcom Inc., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Selected Financial Data
Inventory turnover 11.57 9.00 6.31 5.21 6.24 4.61
Short-term Activity Ratio (no. days)
Average inventory processing period1 32 41 58 70 58 79
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Advanced Micro Devices Inc. 93 77 77 84 85
Apple Inc. 9 9 13 6 6 7
Applied Materials Inc. 154 144 134 119 117 109
Cisco Systems Inc. 26 36 33 24 30 30
Intel Corp. 107 98 108 87 91
Micron Technology Inc. 147 105 96 107 78 82
NVIDIA Corp. 126 75 102 69 85
Qualcomm Inc. 59 60 76 58 52 50
Texas Instruments Inc. 140 147 134 127 113
Average Inventory Processing Period, Sector
Technology Hardware & Equipment 41 37 41 33 30
Average Inventory Processing Period, Industry
Technology 28 28 31 26 25

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 2019 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 11.57 = 32

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Broadcom Inc.’s number of days of inventory outstanding improved from 2017 to 2018 and from 2018 to 2019.

Average Receivable Collection Period

Broadcom Inc., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Selected Financial Data
Receivables turnover 6.93 6.27 7.20 6.07 6.70 5.46
Short-term Activity Ratio (no. days)
Average receivable collection period1 53 58 51 60 55 67
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Advanced Micro Devices Inc. 101 70 27 27 49
Apple Inc. 32 32 28 27 26 35
Applied Materials Inc. 63 54 59 77 66 67
Cisco Systems Inc. 39 41 39 43 40 40
Intel Corp. 39 35 33 29 32
Micron Technology Inc. 43 61 63 52 49 56
NVIDIA Corp. 44 48 44 37 37
Qualcomm Inc. 16 46 59 34 28 33
Texas Instruments Inc. 27 28 31 35 33
Average Receivable Collection Period, Sector
Technology Hardware & Equipment 36 38 35 33 31
Average Receivable Collection Period, Industry
Technology 49 48 47 45 42

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 2019 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.93 = 53

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Broadcom Inc.’s number of days of receivables outstanding deteriorated from 2017 to 2018 but then improved from 2018 to 2019 not reaching 2017 level.

Operating Cycle

Broadcom Inc., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Selected Financial Data
Average inventory processing period 32 41 58 70 58 79
Average receivable collection period 53 58 51 60 55 67
Short-term Activity Ratio
Operating cycle1 85 99 109 130 113 146
Benchmarks
Operating Cycle, Competitors2
Advanced Micro Devices Inc. 194 147 104 111 134
Apple Inc. 41 41 41 33 32 42
Applied Materials Inc. 217 198 193 196 183 176
Cisco Systems Inc. 65 77 72 67 70 70
Intel Corp. 146 133 141 116 123
Micron Technology Inc. 190 166 159 159 127 138
NVIDIA Corp. 170 123 146 106 122
Qualcomm Inc. 75 106 135 92 80 83
Texas Instruments Inc. 167 175 165 162 146
Operating Cycle, Sector
Technology Hardware & Equipment 77 75 76 66 61
Operating Cycle, Industry
Technology 77 76 78 71 67

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 2019 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 32 + 53 = 85

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Broadcom Inc.’s operating cycle improved from 2017 to 2018 and from 2018 to 2019.

Average Payables Payment Period

Broadcom Inc., average payables payment period calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Selected Financial Data
Payables turnover 11.83 12.47 8.26 5.79 5.30 4.64
Short-term Activity Ratio (no. days)
Average payables payment period1 31 29 44 63 69 79
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Advanced Micro Devices Inc. 93 48 40 49 35
Apple Inc. 104 125 127 104 92 98
Applied Materials Inc. 43 39 43 47 42 43
Cisco Systems Inc. 39 37 28 21 21 19
Intel Corp. 51 51 45 39 36
Micron Technology Inc. 48 49 41 44 34 37
NVIDIA Corp. 41 56 62 49 51
Qualcomm Inc. 58 65 73 70 46 75
Texas Instruments Inc. 27 32 32 28 26
Average Payables Payment Period, Sector
Technology Hardware & Equipment 82 94 94 79 71
Average Payables Payment Period, Industry
Technology 66 76 77 68 64

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 2019 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 11.83 = 31

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Broadcom Inc.’s number of days of payables outstanding decreased from 2017 to 2018 but then slightly increased from 2018 to 2019.

Cash Conversion Cycle

Broadcom Inc., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel LibreOffice Calc
Nov 3, 2019 Nov 4, 2018 Oct 29, 2017 Oct 30, 2016 Nov 1, 2015 Nov 2, 2014
Selected Financial Data
Average inventory processing period 32 41 58 70 58 79
Average receivable collection period 53 58 51 60 55 67
Average payables payment period 31 29 44 63 69 79
Short-term Activity Ratio
Cash conversion cycle1 54 70 65 67 44 67
Benchmarks
Cash Conversion Cycle, Competitors2
Advanced Micro Devices Inc. 101 99 64 62 99
Apple Inc. -63 -84 -86 -71 -60 -56
Applied Materials Inc. 174 159 150 149 141 133
Cisco Systems Inc. 26 40 44 46 49 51
Intel Corp. 95 82 96 77 87
Micron Technology Inc. 142 117 118 115 93 101
NVIDIA Corp. 129 67 84 57 71
Qualcomm Inc. 17 41 62 22 34 8
Texas Instruments Inc. 140 143 133 134 120
Cash Conversion Cycle, Sector
Technology Hardware & Equipment -5 -19 -18 -13 -10
Cash Conversion Cycle, Industry
Technology 11 0 1 3 3

Based on: 10-K (filing date: 2019-12-20), 10-K (filing date: 2018-12-21), 10-K (filing date: 2017-12-21), 10-K (filing date: 2016-12-23), 10-K (filing date: 2015-12-17), 10-K (filing date: 2014-12-29).

1 2019 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 32 + 5331 = 54

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Broadcom Inc.’s cash conversion cycle deteriorated from 2017 to 2018 but then improved from 2018 to 2019 exceeding 2017 level.