Stock Analysis on Net
Stock Analysis on Net

Broadcom Inc. (NASDAQ:AVGO)

Adjusted Financial Ratios

Microsoft Excel

Adjusted Financial Ratios (Summary)

Broadcom Inc., adjusted financial ratios

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
Activity Ratio
Total Asset Turnover
Reported 0.49 0.45 0.36 0.31 0.33 0.42
Adjusted 0.50 0.46 0.37 0.31 0.33 0.41
Solvency Ratios
Debt to Equity
Reported 1.64 1.74 1.59 1.72 1.32 0.66
Adjusted 1.70 1.81 1.66 1.72 1.26 0.68
Debt to Capital
Reported 0.62 0.64 0.61 0.63 0.57 0.40
Adjusted 0.63 0.64 0.62 0.63 0.56 0.40
Financial Leverage
Reported 3.04 3.23 3.03 3.18 2.71 1.88
Adjusted 3.10 3.28 3.08 3.13 2.57 1.90
Profitability Ratios
Net Profit Margin
Reported 39.31% 34.62% 24.54% 12.39% 12.05% 58.80%
Adjusted 38.63% 34.68% 20.77% 7.66% 8.90% 19.43%
Return on Equity (ROE)
Reported 58.70% 50.62% 26.99% 12.40% 10.92% 45.99%
Adjusted 59.41% 52.00% 23.46% 7.55% 7.58% 15.25%
Return on Assets (ROA)
Reported 19.33% 15.69% 8.91% 3.90% 4.04% 24.46%
Adjusted 19.18% 15.84% 7.61% 2.41% 2.95% 8.02%

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).

Financial ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Broadcom Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Broadcom Inc. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Broadcom Inc. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Broadcom Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Broadcom Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Broadcom Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Broadcom Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.

Broadcom Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
Reported
Selected Financial Data (US$ in millions)
Net revenue 35,819 33,203 27,450 23,888 22,597 20,848
Total assets 72,861 73,249 75,570 75,933 67,493 50,124
Activity Ratio
Total asset turnover1 0.49 0.45 0.36 0.31 0.33 0.42
Adjusted
Selected Financial Data (US$ in millions)
Net revenue 35,819 33,203 27,450 23,888 22,597 20,848
Adjusted total assets2 72,163 72,676 74,902 75,933 68,142 50,521
Activity Ratio
Adjusted total asset turnover3 0.50 0.46 0.37 0.31 0.33 0.41

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).

1 2023 Calculation
Total asset turnover = Net revenue ÷ Total assets
= 35,819 ÷ 72,861 = 0.49

2 Adjusted total assets. See details »

3 2023 Calculation
Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 35,819 ÷ 72,163 = 0.50

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Broadcom Inc. adjusted total asset turnover ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Debt to Equity

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 39,229 39,515 39,730 41,062 32,798 17,493
Stockholders’ equity 23,988 22,709 24,962 23,874 24,941 26,657
Solvency Ratio
Debt to equity1 1.64 1.74 1.59 1.72 1.32 0.66
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 39,648 39,978 40,273 41,689 33,447 18,005
Adjusted stockholders’ equity3 23,292 22,142 24,298 24,237 26,530 26,564
Solvency Ratio
Adjusted debt to equity4 1.70 1.81 1.66 1.72 1.26 0.68

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).

1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 39,229 ÷ 23,988 = 1.64

2 Adjusted total debt. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 39,648 ÷ 23,292 = 1.70

Solvency ratio Description The company
Adjusted debt-to-equity ratio A solvency ratio calculated as adjusted total debt divided by adjusted total equity. Broadcom Inc. adjusted debt-to-equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Debt to Capital

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
Reported
Selected Financial Data (US$ in millions)
Total debt 39,229 39,515 39,730 41,062 32,798 17,493
Total capital 63,217 62,224 64,692 64,936 57,739 44,150
Solvency Ratio
Debt to capital1 0.62 0.64 0.61 0.63 0.57 0.40
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total debt2 39,648 39,978 40,273 41,689 33,447 18,005
Adjusted total capital3 62,940 62,120 64,571 65,926 59,977 44,569
Solvency Ratio
Adjusted debt to capital4 0.63 0.64 0.62 0.63 0.56 0.40

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).

1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 39,229 ÷ 63,217 = 0.62

2 Adjusted total debt. See details »

3 Adjusted total capital. See details »

4 2023 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 39,648 ÷ 62,940 = 0.63

Solvency ratio Description The company
Adjusted debt-to-capital ratio A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity. Broadcom Inc. adjusted debt-to-capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level.

Adjusted Financial Leverage

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
Reported
Selected Financial Data (US$ in millions)
Total assets 72,861 73,249 75,570 75,933 67,493 50,124
Stockholders’ equity 23,988 22,709 24,962 23,874 24,941 26,657
Solvency Ratio
Financial leverage1 3.04 3.23 3.03 3.18 2.71 1.88
Adjusted
Selected Financial Data (US$ in millions)
Adjusted total assets2 72,163 72,676 74,902 75,933 68,142 50,521
Adjusted stockholders’ equity3 23,292 22,142 24,298 24,237 26,530 26,564
Solvency Ratio
Adjusted financial leverage4 3.10 3.28 3.08 3.13 2.57 1.90

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).

1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 72,861 ÷ 23,988 = 3.04

2 Adjusted total assets. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 72,163 ÷ 23,292 = 3.10

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Broadcom Inc. adjusted financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Adjusted Net Profit Margin

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Broadcom Inc. stockholders 14,082 11,495 6,736 2,960 2,724 12,259
Net revenue 35,819 33,203 27,450 23,888 22,597 20,848
Profitability Ratio
Net profit margin1 39.31% 34.62% 24.54% 12.39% 12.05% 58.80%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 13,838 11,514 5,701 1,829 2,011 4,050
Net revenue 35,819 33,203 27,450 23,888 22,597 20,848
Profitability Ratio
Adjusted net profit margin3 38.63% 34.68% 20.77% 7.66% 8.90% 19.43%

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).

1 2023 Calculation
Net profit margin = 100 × Net income attributable to Broadcom Inc. stockholders ÷ Net revenue
= 100 × 14,082 ÷ 35,819 = 39.31%

2 Adjusted net income. See details »

3 2023 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Net revenue
= 100 × 13,838 ÷ 35,819 = 38.63%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Broadcom Inc. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Broadcom Inc. stockholders 14,082 11,495 6,736 2,960 2,724 12,259
Stockholders’ equity 23,988 22,709 24,962 23,874 24,941 26,657
Profitability Ratio
ROE1 58.70% 50.62% 26.99% 12.40% 10.92% 45.99%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 13,838 11,514 5,701 1,829 2,011 4,050
Adjusted stockholders’ equity3 23,292 22,142 24,298 24,237 26,530 26,564
Profitability Ratio
Adjusted ROE4 59.41% 52.00% 23.46% 7.55% 7.58% 15.25%

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).

1 2023 Calculation
ROE = 100 × Net income attributable to Broadcom Inc. stockholders ÷ Stockholders’ equity
= 100 × 14,082 ÷ 23,988 = 58.70%

2 Adjusted net income. See details »

3 Adjusted stockholders’ equity. See details »

4 2023 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 13,838 ÷ 23,292 = 59.41%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted total equity. Broadcom Inc. adjusted ROE improved from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Assets (ROA)

Microsoft Excel
Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020 Nov 3, 2019 Nov 4, 2018
Reported
Selected Financial Data (US$ in millions)
Net income attributable to Broadcom Inc. stockholders 14,082 11,495 6,736 2,960 2,724 12,259
Total assets 72,861 73,249 75,570 75,933 67,493 50,124
Profitability Ratio
ROA1 19.33% 15.69% 8.91% 3.90% 4.04% 24.46%
Adjusted
Selected Financial Data (US$ in millions)
Adjusted net income2 13,838 11,514 5,701 1,829 2,011 4,050
Adjusted total assets3 72,163 72,676 74,902 75,933 68,142 50,521
Profitability Ratio
Adjusted ROA4 19.18% 15.84% 7.61% 2.41% 2.95% 8.02%

Based on: 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 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).

1 2023 Calculation
ROA = 100 × Net income attributable to Broadcom Inc. stockholders ÷ Total assets
= 100 × 14,082 ÷ 72,861 = 19.33%

2 Adjusted net income. See details »

3 Adjusted total assets. See details »

4 2023 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 13,838 ÷ 72,163 = 19.18%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Broadcom Inc. adjusted ROA improved from 2021 to 2022 and from 2022 to 2023.