Stock Analysis on Net

Broadcom Inc. (NASDAQ:AVGO)

Analysis of Short-term (Operating) Activity Ratios

Microsoft Excel LibreOffice Calc

Short-term Activity Ratios (Summary)

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

Microsoft Excel LibreOffice Calc
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.

Inventory Turnover

Broadcom Inc., inventory turnover 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)
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.

Receivables Turnover

Broadcom Inc., receivables turnover 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 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.

Payables Turnover

Broadcom Inc., payables turnover 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)
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.

Working Capital Turnover

Broadcom Inc., working capital turnover 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)
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.

Average Inventory Processing Period

Broadcom Inc., average inventory processing period 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
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.

Average Receivable Collection Period

Broadcom Inc., average receivable collection period 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
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.

Operating Cycle

Broadcom Inc., operating cycle calculation, comparison to benchmarks

No. days

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
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.

Average Payables Payment Period

Broadcom Inc., average payables payment period 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
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.

Cash Conversion Cycle

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

No. days

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
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 + 2837 = 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.