Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.

Short-term Activity Ratios (Summary)
Inventory Turnover
Receivables Turnover
Payables Turnover
Working Capital Turnover
Average Inventory Processing Period
Average Receivable Collection Period
Operating Cycle
Average Payables Payment Period
Cash Conversion Cycle

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

	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018	Oct 29, 2017	Oct 30, 2016
Turnover Ratios
Inventory turnover	8.18	10.34	11.57	9.00	6.31	5.21
Receivables turnover	13.25	10.40	6.93	6.27	7.20	6.07
Payables turnover	9.77	12.41	11.83	12.47	8.26	5.79
Working capital turnover	2.66	4.32	7.49	3.08	1.33	3.27
Average No. Days
Average inventory processing period	45	35	32	41	58	70
Add: Average receivable collection period	28	35	53	58	51	60
Operating cycle	73	70	85	99	109	130
Less: Average payables payment period	37	29	31	29	44	63
Cash conversion cycle	36	41	54	70	65	67

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).

Short-term activity ratio	Description	The company
Inventory turnover	An activity ratio calculated as cost of goods sold divided by inventory.	Broadcom Inc. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.
Receivables turnover	An activity ratio equal to revenue divided by receivables.	Broadcom Inc. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021.
Payables turnover	An activity ratio calculated as cost of goods sold divided by payables.	Broadcom Inc. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.
Working capital turnover	An activity ratio calculated as revenue divided by working capital.	Broadcom Inc. working capital turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

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. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.
Average receivable collection period	An activity ratio equal to the number of days in the period divided by receivables turnover.	Broadcom Inc. number of days of receivables outstanding improved from 2019 to 2020 and from 2020 to 2021.
Operating cycle	Equal to average inventory processing period plus average receivables collection period.	Broadcom Inc. operating cycle improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.
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. number of days of payables outstanding decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.
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. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021.

Broadcom Inc., inventory turnover 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)
Cost of revenue	10,606	10,372	10,114	10,115	9,127	7,300
Inventory	1,297	1,003	874	1,124	1,447	1,400
Short-term Activity Ratio
Inventory turnover¹	8.18	10.34	11.57	9.00	6.31	5.21
Benchmarks
Inventory Turnover, Competitors²
Advanced Micro Devices Inc.	—	3.87	3.93	4.77	4.74	4.36
Applied Materials Inc.	2.82	2.44	2.37	2.54	2.73	3.08
Intel Corp.	—	4.06	3.41	3.74	3.39	4.18
Lam Research Corp.	2.91	2.86	3.44	3.15	3.58	3.36
Micron Technology Inc.	3.85	2.65	2.48	3.48	3.81	3.42
NVIDIA Corp.	3.44	4.24	2.89	4.89	3.59	5.26
Qualcomm Inc.	4.42	3.56	6.14	6.05	4.81	6.27
Texas Instruments Inc.	—	2.66	2.61	2.48	2.73	2.87
Inventory Turnover, Sector
Semiconductors & Semiconductor Equipment	—	3.55	3.44	3.84	3.70	4.05
Inventory Turnover, Industry
Information Technology	—	13.22	13.29	13.53	12.80	15.28

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
Inventory turnover = Cost of revenue ÷ Inventory
= 10,606 ÷ 1,297 = 8.18

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. inventory turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Broadcom Inc., receivables turnover 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 revenue	27,450	23,888	22,597	20,848	17,636	13,240
Trade accounts receivable, net	2,071	2,297	3,259	3,325	2,448	2,181
Short-term Activity Ratio
Receivables turnover¹	13.25	10.40	6.93	6.27	7.20	6.07
Benchmarks
Receivables Turnover, Competitors²
Advanced Micro Devices Inc.	—	4.73	3.62	5.24	13.32	13.74
Applied Materials Inc.	4.66	5.81	5.77	6.73	6.22	4.75
Intel Corp.	—	11.48	9.40	10.54	11.19	12.66
Lam Research Corp.	4.83	4.79	6.63	5.09	4.79	4.66
Micron Technology Inc.	5.63	6.13	8.43	6.01	5.82	7.02
NVIDIA Corp.	6.86	6.59	8.23	7.68	8.37	9.92
Qualcomm Inc.	15.16	8.76	23.21	7.98	6.23	10.74
Texas Instruments Inc.	—	10.23	13.39	13.08	11.71	10.55
Receivables Turnover, Sector
Semiconductors & Semiconductor Equipment	—	8.21	8.63	7.77	7.98	8.99
Receivables Turnover, Industry
Information Technology	—	8.34	7.61	7.94	8.34	8.64

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
Receivables turnover = Net revenue ÷ Trade accounts receivable, net
= 27,450 ÷ 2,071 = 13.25

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. receivables turnover ratio improved from 2019 to 2020 and from 2020 to 2021.

Broadcom Inc., payables turnover 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)
Cost of revenue	10,606	10,372	10,114	10,115	9,127	7,300
Accounts payable	1,086	836	855	811	1,105	1,261
Short-term Activity Ratio
Payables turnover¹	9.77	12.41	11.83	12.47	8.26	5.79
Benchmarks
Payables Turnover, Competitors²
Advanced Micro Devices Inc.	—	11.57	3.91	7.63	9.13	7.44
Applied Materials Inc.	8.25	8.46	8.58	9.47	8.47	7.77
Intel Corp.	—	6.14	7.23	7.09	8.09	9.37
Lam Research Corp.	9.43	9.18	14.06	11.57	9.49	9.38
Micron Technology Inc.	9.91	6.79	7.58	7.39	8.92	8.34
NVIDIA Corp.	5.23	6.04	8.89	6.53	5.87	7.43
Qualcomm Inc.	5.19	4.12	6.29	5.61	4.97	5.25
Texas Instruments Inc.	—	12.51	13.45	11.52	11.47	12.95
Payables Turnover, Sector
Semiconductors & Semiconductor Equipment	—	6.96	7.86	7.88	7.80	7.75
Payables Turnover, Industry
Information Technology	—	5.58	5.29	4.93	4.98	5.65

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
Payables turnover = Cost of revenue ÷ Accounts payable
= 10,606 ÷ 1,086 = 9.77

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. payables turnover ratio increased from 2019 to 2020 but then decreased significantly from 2020 to 2021.

Broadcom Inc., working capital turnover 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)
Current assets	16,586	11,895	9,917	9,107	15,823	7,125
Less: Current liabilities	6,281	6,371	6,899	2,338	2,529	3,078
Working capital	10,305	5,524	3,018	6,769	13,294	4,047

Net revenue	27,450	23,888	22,597	20,848	17,636	13,240
Short-term Activity Ratio
Working capital turnover¹	2.66	4.32	7.49	3.08	1.33	3.27
Benchmarks
Working Capital Turnover, Competitors²
Advanced Micro Devices Inc.	—	2.62	3.01	4.16	4.69	3.61
Applied Materials Inc.	2.36	1.93	2.54	2.58	1.65	2.29
Intel Corp.	—	3.46	8.06	5.83	5.20	3.91
Lam Research Corp.	1.80	1.31	1.56	1.85	1.29	0.87
Micron Technology Inc.	2.05	1.89	2.31	2.95	2.85	2.66
NVIDIA Corp.	1.37	0.92	1.27	1.20	1.02	1.35
Qualcomm Inc.	4.13	2.39	3.10	3.70	0.68	1.50
Texas Instruments Inc.	—	1.84	2.17	2.81	2.31	2.57
Working Capital Turnover, Sector
Semiconductors & Semiconductor Equipment	—	2.34	3.33	3.24	1.83	2.42
Working Capital Turnover, Industry
Information Technology	—	2.92	3.13	2.85	2.15	2.37

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
Working capital turnover = Net revenue ÷ Working capital
= 27,450 ÷ 10,305 = 2.66

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. working capital turnover ratio deteriorated from 2019 to 2020 and from 2020 to 2021.

Broadcom Inc., average inventory processing period 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
Inventory turnover	8.18	10.34	11.57	9.00	6.31	5.21
Short-term Activity Ratio (no. days)
Average inventory processing period¹	45	35	32	41	58	70
Benchmarks (no. days)
Average Inventory Processing Period, Competitors²
Advanced Micro Devices Inc.	—	94	93	77	77	84
Applied Materials Inc.	129	150	154	144	134	119
Intel Corp.	—	90	107	98	108	87
Lam Research Corp.	126	128	106	116	102	109
Micron Technology Inc.	95	138	147	105	96	107
NVIDIA Corp.	106	86	126	75	102	69
Qualcomm Inc.	83	102	59	60	76	58
Texas Instruments Inc.	—	137	140	147	134	127
Average Inventory Processing Period, Sector
Semiconductors & Semiconductor Equipment	—	103	106	95	99	90
Average Inventory Processing Period, Industry
Information Technology	—	28	27	27	29	24

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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 8.18 = 45

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. number of days of inventory outstanding deteriorated from 2019 to 2020 and from 2020 to 2021.

Broadcom Inc., average receivable collection period 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
Receivables turnover	13.25	10.40	6.93	6.27	7.20	6.07
Short-term Activity Ratio (no. days)
Average receivable collection period¹	28	35	53	58	51	60
Benchmarks (no. days)
Average Receivable Collection Period, Competitors²
Advanced Micro Devices Inc.	—	77	101	70	27	27
Applied Materials Inc.	78	63	63	54	59	77
Intel Corp.	—	32	39	35	33	29
Lam Research Corp.	76	76	55	72	76	78
Micron Technology Inc.	65	59	43	61	63	52
NVIDIA Corp.	53	55	44	48	44	37
Qualcomm Inc.	24	42	16	46	59	34
Texas Instruments Inc.	—	36	27	28	31	35
Average Receivable Collection Period, Sector
Semiconductors & Semiconductor Equipment	—	44	42	47	46	41
Average Receivable Collection Period, Industry
Information Technology	—	44	48	46	44	42

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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 13.25 = 28

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. number of days of receivables outstanding improved from 2019 to 2020 and from 2020 to 2021.

Broadcom Inc., operating cycle calculation, comparison to benchmarks

No. days

	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018	Oct 29, 2017	Oct 30, 2016
Selected Financial Data
Average inventory processing period	45	35	32	41	58	70
Average receivable collection period	28	35	53	58	51	60
Short-term Activity Ratio
Operating cycle¹	73	70	85	99	109	130
Benchmarks
Operating Cycle, Competitors²
Advanced Micro Devices Inc.	—	171	194	147	104	111
Applied Materials Inc.	207	213	217	198	193	196
Intel Corp.	—	122	146	133	141	116
Lam Research Corp.	202	204	161	188	178	187
Micron Technology Inc.	160	197	190	166	159	159
NVIDIA Corp.	159	141	170	123	146	106
Qualcomm Inc.	107	144	75	106	135	92
Texas Instruments Inc.	—	173	167	175	165	162
Operating Cycle, Sector
Semiconductors & Semiconductor Equipment	—	147	148	142	145	131
Operating Cycle, Industry
Information Technology	—	72	75	73	73	66

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 cycle = Average inventory processing period + Average receivable collection period
= 45 + 28 = 73

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. operating cycle improved from 2019 to 2020 but then slightly deteriorated from 2020 to 2021.

Broadcom Inc., average payables payment period 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
Payables turnover	9.77	12.41	11.83	12.47	8.26	5.79
Short-term Activity Ratio (no. days)
Average payables payment period¹	37	29	31	29	44	63
Benchmarks (no. days)
Average Payables Payment Period, Competitors²
Advanced Micro Devices Inc.	—	32	93	48	40	49
Applied Materials Inc.	44	43	43	39	43	47
Intel Corp.	—	59	51	51	45	39
Lam Research Corp.	39	40	26	32	38	39
Micron Technology Inc.	37	54	48	49	41	44
NVIDIA Corp.	70	60	41	56	62	49
Qualcomm Inc.	70	89	58	65	73	70
Texas Instruments Inc.	—	29	27	32	32	28
Average Payables Payment Period, Sector
Semiconductors & Semiconductor Equipment	—	52	46	46	47	47
Average Payables Payment Period, Industry
Information Technology	—	65	69	74	73	65

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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 9.77 = 37

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. number of days of payables outstanding decreased from 2019 to 2020 but then increased from 2020 to 2021 exceeding 2019 level.

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

No. days

	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019	Nov 4, 2018	Oct 29, 2017	Oct 30, 2016
Selected Financial Data
Average inventory processing period	45	35	32	41	58	70
Average receivable collection period	28	35	53	58	51	60
Average payables payment period	37	29	31	29	44	63
Short-term Activity Ratio
Cash conversion cycle¹	36	41	54	70	65	67
Benchmarks
Cash Conversion Cycle, Competitors²
Advanced Micro Devices Inc.	—	139	101	99	64	62
Applied Materials Inc.	163	170	174	159	150	149
Intel Corp.	—	63	95	82	96	77
Lam Research Corp.	163	164	135	156	140	148
Micron Technology Inc.	123	143	142	117	118	115
NVIDIA Corp.	89	81	129	67	84	57
Qualcomm Inc.	37	55	17	41	62	22
Texas Instruments Inc.	—	144	140	143	133	134
Cash Conversion Cycle, Sector
Semiconductors & Semiconductor Equipment	—	95	102	96	98	84
Cash Conversion Cycle, Industry
Information Technology	—	7	6	-1	0	1

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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 45 + 28 – 37 = 36

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. cash conversion cycle improved from 2019 to 2020 and from 2020 to 2021.

Broadcom Inc. (NASDAQ:AVGO)

Analysis of Short-term (Operating) Activity Ratios

Short-term Activity Ratios (Summary)

Inventory Turnover

Receivables Turnover

Payables Turnover

Working Capital Turnover

Average Inventory Processing Period

Average Receivable Collection Period

Operating Cycle

Average Payables Payment Period

Cash Conversion Cycle