Stock Analysis on Net
Stock Analysis on Net

Broadcom Inc. (NASDAQ:AVGO)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Broadcom Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Feb 4, 2024 16.55% = 6.54% × 2.53
Oct 29, 2023 58.70% = 19.33% × 3.04
Jul 30, 2023 63.03% = 19.44% × 3.24
Apr 30, 2023 62.20% = 19.10% × 3.26
Jan 29, 2023 54.90% = 17.54% × 3.13
Oct 30, 2022 50.62% = 15.69% × 3.23
Jul 31, 2022 48.50% = 14.20% × 3.42
May 1, 2022 42.58% = 12.45% × 3.42
Jan 30, 2022 34.09% = 10.69% × 3.19
Oct 31, 2021 26.99% = 8.91% × 3.03
Aug 1, 2021 24.94% = 8.00% × 3.12
May 2, 2021 20.40% = 6.47% × 3.15
Jan 31, 2021 16.49% = 5.14% × 3.21
Nov 1, 2020 12.40% = 3.90% × 3.18
Aug 2, 2020 10.54% = 3.13% × 3.37
May 3, 2020 10.48% = 3.08% × 3.41
Feb 2, 2020 10.83% = 3.26% × 3.32
Nov 3, 2019 10.92% = 4.04% × 2.71
Aug 4, 2019 13.91% = 4.29% × 3.24
May 5, 2019 15.66% = 4.90% × 3.20
Feb 3, 2019 27.99% = 9.01% × 3.10
Nov 4, 2018 45.99% = 24.46% × 1.88
Aug 5, 2018 — = — × 1.83
May 6, 2018 — = — × 1.71
Feb 4, 2018 — = — × 2.11

Based on: 10-Q (reporting date: 2024-02-04), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-Q (reporting date: 2020-02-02), 10-K (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-Q (reporting date: 2019-02-03), 10-K (reporting date: 2018-11-04), 10-Q (reporting date: 2018-08-05), 10-Q (reporting date: 2018-05-06), 10-Q (reporting date: 2018-02-04).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Broadcom Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Feb 4, 2024 16.55% = 29.93% × 0.22 × 2.53
Oct 29, 2023 58.70% = 39.31% × 0.49 × 3.04
Jul 30, 2023 63.03% = 39.25% × 0.50 × 3.24
Apr 30, 2023 62.20% = 39.06% × 0.49 × 3.26
Jan 29, 2023 54.90% = 37.19% × 0.47 × 3.13
Oct 30, 2022 50.62% = 34.62% × 0.45 × 3.23
Jul 31, 2022 48.50% = 31.96% × 0.44 × 3.42
May 1, 2022 42.58% = 29.76% × 0.42 × 3.42
Jan 30, 2022 34.09% = 27.47% × 0.39 × 3.19
Oct 31, 2021 26.99% = 24.54% × 0.36 × 3.03
Aug 1, 2021 24.94% = 22.90% × 0.35 × 3.12
May 2, 2021 20.40% = 19.11% × 0.34 × 3.15
Jan 31, 2021 16.49% = 16.01% × 0.32 × 3.21
Nov 1, 2020 12.40% = 12.39% × 0.31 × 3.18
Aug 2, 2020 10.54% = 10.70% × 0.29 × 3.37
May 3, 2020 10.48% = 10.97% × 0.28 × 3.41
Feb 2, 2020 10.83% = 11.64% × 0.28 × 3.32
Nov 3, 2019 10.92% = 12.05% × 0.33 × 2.71
Aug 4, 2019 13.91% = 13.44% × 0.32 × 3.24
May 5, 2019 15.66% = 15.92% × 0.31 × 3.20
Feb 3, 2019 27.99% = 30.50% × 0.30 × 3.10
Nov 4, 2018 45.99% = 58.80% × 0.42 × 1.88
Aug 5, 2018 — = — × — × 1.83
May 6, 2018 — = — × — × 1.71
Feb 4, 2018 — = — × — × 2.11

Based on: 10-Q (reporting date: 2024-02-04), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-Q (reporting date: 2020-02-02), 10-K (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-Q (reporting date: 2019-02-03), 10-K (reporting date: 2018-11-04), 10-Q (reporting date: 2018-08-05), 10-Q (reporting date: 2018-05-06), 10-Q (reporting date: 2018-02-04).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in efficiency measured by asset turnover ratio.

Five-Component Disaggregation of ROE

Broadcom Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Feb 4, 2024 16.55% = 0.92 × 0.86 × 38.06% × 0.22 × 2.53
Oct 29, 2023 58.70% = 0.93 × 0.90 × 46.68% × 0.49 × 3.04
Jul 30, 2023 63.03% = 0.94 × 0.90 × 46.18% × 0.50 × 3.24
Apr 30, 2023 62.20% = 0.94 × 0.90 × 46.05% × 0.49 × 3.26
Jan 29, 2023 54.90% = 0.94 × 0.89 × 44.53% × 0.47 × 3.13
Oct 30, 2022 50.62% = 0.92 × 0.88 × 42.68% × 0.45 × 3.23
Jul 31, 2022 48.50% = 0.92 × 0.86 × 40.24% × 0.44 × 3.42
May 1, 2022 42.58% = 0.95 × 0.84 × 37.16% × 0.42 × 3.42
Jan 30, 2022 34.09% = 0.97 × 0.82 × 34.35% × 0.39 × 3.19
Oct 31, 2021 26.99% = 1.00 × 0.78 × 31.51% × 0.36 × 3.03
Aug 1, 2021 24.94% = 1.06 × 0.75 × 28.68% × 0.35 × 3.12
May 2, 2021 20.40% = 1.06 × 0.71 × 25.51% × 0.34 × 3.15
Jan 31, 2021 16.49% = 1.12 × 0.64 × 22.11% × 0.32 × 3.21
Nov 1, 2020 12.40% = 1.21 × 0.58 × 17.66% × 0.31 × 3.18
Aug 2, 2020 10.54% = 1.21 × 0.54 × 16.25% × 0.29 × 3.37
May 3, 2020 10.48% = 1.25 × 0.55 × 15.81% × 0.28 × 3.41
Feb 2, 2020 10.83% = 1.17 × 0.60 × 16.59% × 0.28 × 3.32
Nov 3, 2019 10.92% = 1.23 × 0.61 × 16.19% × 0.33 × 2.71
Aug 4, 2019 13.91% = 1.04 × 0.70 × 18.50% × 0.32 × 3.24
May 5, 2019 15.66% = 0.97 × 0.78 × 21.05% × 0.31 × 3.20
Feb 3, 2019 27.99% = 1.63 × 0.84 × 22.47% × 0.30 × 3.10
Nov 4, 2018 45.99% = 2.94 × 0.87 × 23.04% × 0.42 × 1.88
Aug 5, 2018 — = — × — × — × — × 1.83
May 6, 2018 — = — × — × — × — × 1.71
Feb 4, 2018 — = — × — × — × — × 2.11

Based on: 10-Q (reporting date: 2024-02-04), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-Q (reporting date: 2020-02-02), 10-K (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-Q (reporting date: 2019-02-03), 10-K (reporting date: 2018-11-04), 10-Q (reporting date: 2018-08-05), 10-Q (reporting date: 2018-05-06), 10-Q (reporting date: 2018-02-04).

The primary reason for the decrease in return on equity ratio (ROE) over Q1 2024 is the decrease in efficiency measured by asset turnover ratio.

Two-Component Disaggregation of ROA

Broadcom Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Feb 4, 2024 6.54% = 29.93% × 0.22
Oct 29, 2023 19.33% = 39.31% × 0.49
Jul 30, 2023 19.44% = 39.25% × 0.50
Apr 30, 2023 19.10% = 39.06% × 0.49
Jan 29, 2023 17.54% = 37.19% × 0.47
Oct 30, 2022 15.69% = 34.62% × 0.45
Jul 31, 2022 14.20% = 31.96% × 0.44
May 1, 2022 12.45% = 29.76% × 0.42
Jan 30, 2022 10.69% = 27.47% × 0.39
Oct 31, 2021 8.91% = 24.54% × 0.36
Aug 1, 2021 8.00% = 22.90% × 0.35
May 2, 2021 6.47% = 19.11% × 0.34
Jan 31, 2021 5.14% = 16.01% × 0.32
Nov 1, 2020 3.90% = 12.39% × 0.31
Aug 2, 2020 3.13% = 10.70% × 0.29
May 3, 2020 3.08% = 10.97% × 0.28
Feb 2, 2020 3.26% = 11.64% × 0.28
Nov 3, 2019 4.04% = 12.05% × 0.33
Aug 4, 2019 4.29% = 13.44% × 0.32
May 5, 2019 4.90% = 15.92% × 0.31
Feb 3, 2019 9.01% = 30.50% × 0.30
Nov 4, 2018 24.46% = 58.80% × 0.42
Aug 5, 2018 — = — × —
May 6, 2018 — = — × —
Feb 4, 2018 — = — × —

Based on: 10-Q (reporting date: 2024-02-04), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-Q (reporting date: 2020-02-02), 10-K (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-Q (reporting date: 2019-02-03), 10-K (reporting date: 2018-11-04), 10-Q (reporting date: 2018-08-05), 10-Q (reporting date: 2018-05-06), 10-Q (reporting date: 2018-02-04).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2024 is the decrease in asset turnover ratio.

Four-Component Disaggregation of ROA

Broadcom Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Feb 4, 2024 6.54% = 0.92 × 0.86 × 38.06% × 0.22
Oct 29, 2023 19.33% = 0.93 × 0.90 × 46.68% × 0.49
Jul 30, 2023 19.44% = 0.94 × 0.90 × 46.18% × 0.50
Apr 30, 2023 19.10% = 0.94 × 0.90 × 46.05% × 0.49
Jan 29, 2023 17.54% = 0.94 × 0.89 × 44.53% × 0.47
Oct 30, 2022 15.69% = 0.92 × 0.88 × 42.68% × 0.45
Jul 31, 2022 14.20% = 0.92 × 0.86 × 40.24% × 0.44
May 1, 2022 12.45% = 0.95 × 0.84 × 37.16% × 0.42
Jan 30, 2022 10.69% = 0.97 × 0.82 × 34.35% × 0.39
Oct 31, 2021 8.91% = 1.00 × 0.78 × 31.51% × 0.36
Aug 1, 2021 8.00% = 1.06 × 0.75 × 28.68% × 0.35
May 2, 2021 6.47% = 1.06 × 0.71 × 25.51% × 0.34
Jan 31, 2021 5.14% = 1.12 × 0.64 × 22.11% × 0.32
Nov 1, 2020 3.90% = 1.21 × 0.58 × 17.66% × 0.31
Aug 2, 2020 3.13% = 1.21 × 0.54 × 16.25% × 0.29
May 3, 2020 3.08% = 1.25 × 0.55 × 15.81% × 0.28
Feb 2, 2020 3.26% = 1.17 × 0.60 × 16.59% × 0.28
Nov 3, 2019 4.04% = 1.23 × 0.61 × 16.19% × 0.33
Aug 4, 2019 4.29% = 1.04 × 0.70 × 18.50% × 0.32
May 5, 2019 4.90% = 0.97 × 0.78 × 21.05% × 0.31
Feb 3, 2019 9.01% = 1.63 × 0.84 × 22.47% × 0.30
Nov 4, 2018 24.46% = 2.94 × 0.87 × 23.04% × 0.42
Aug 5, 2018 — = — × — × — × —
May 6, 2018 — = — × — × — × —
Feb 4, 2018 — = — × — × — × —

Based on: 10-Q (reporting date: 2024-02-04), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-Q (reporting date: 2020-02-02), 10-K (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-Q (reporting date: 2019-02-03), 10-K (reporting date: 2018-11-04), 10-Q (reporting date: 2018-08-05), 10-Q (reporting date: 2018-05-06), 10-Q (reporting date: 2018-02-04).

The primary reason for the decrease in return on assets ratio (ROA) over Q1 2024 is the decrease in efficiency measured by asset turnover ratio.

Disaggregation of Net Profit Margin

Broadcom Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Feb 4, 2024 29.93% = 0.92 × 0.86 × 38.06%
Oct 29, 2023 39.31% = 0.93 × 0.90 × 46.68%
Jul 30, 2023 39.25% = 0.94 × 0.90 × 46.18%
Apr 30, 2023 39.06% = 0.94 × 0.90 × 46.05%
Jan 29, 2023 37.19% = 0.94 × 0.89 × 44.53%
Oct 30, 2022 34.62% = 0.92 × 0.88 × 42.68%
Jul 31, 2022 31.96% = 0.92 × 0.86 × 40.24%
May 1, 2022 29.76% = 0.95 × 0.84 × 37.16%
Jan 30, 2022 27.47% = 0.97 × 0.82 × 34.35%
Oct 31, 2021 24.54% = 1.00 × 0.78 × 31.51%
Aug 1, 2021 22.90% = 1.06 × 0.75 × 28.68%
May 2, 2021 19.11% = 1.06 × 0.71 × 25.51%
Jan 31, 2021 16.01% = 1.12 × 0.64 × 22.11%
Nov 1, 2020 12.39% = 1.21 × 0.58 × 17.66%
Aug 2, 2020 10.70% = 1.21 × 0.54 × 16.25%
May 3, 2020 10.97% = 1.25 × 0.55 × 15.81%
Feb 2, 2020 11.64% = 1.17 × 0.60 × 16.59%
Nov 3, 2019 12.05% = 1.23 × 0.61 × 16.19%
Aug 4, 2019 13.44% = 1.04 × 0.70 × 18.50%
May 5, 2019 15.92% = 0.97 × 0.78 × 21.05%
Feb 3, 2019 30.50% = 1.63 × 0.84 × 22.47%
Nov 4, 2018 58.80% = 2.94 × 0.87 × 23.04%
Aug 5, 2018 — = — × — × —
May 6, 2018 — = — × — × —
Feb 4, 2018 — = — × — × —

Based on: 10-Q (reporting date: 2024-02-04), 10-K (reporting date: 2023-10-29), 10-Q (reporting date: 2023-07-30), 10-Q (reporting date: 2023-04-30), 10-Q (reporting date: 2023-01-29), 10-K (reporting date: 2022-10-30), 10-Q (reporting date: 2022-07-31), 10-Q (reporting date: 2022-05-01), 10-Q (reporting date: 2022-01-30), 10-K (reporting date: 2021-10-31), 10-Q (reporting date: 2021-08-01), 10-Q (reporting date: 2021-05-02), 10-Q (reporting date: 2021-01-31), 10-K (reporting date: 2020-11-01), 10-Q (reporting date: 2020-08-02), 10-Q (reporting date: 2020-05-03), 10-Q (reporting date: 2020-02-02), 10-K (reporting date: 2019-11-03), 10-Q (reporting date: 2019-08-04), 10-Q (reporting date: 2019-05-05), 10-Q (reporting date: 2019-02-03), 10-K (reporting date: 2018-11-04), 10-Q (reporting date: 2018-08-05), 10-Q (reporting date: 2018-05-06), 10-Q (reporting date: 2018-02-04).

The primary reason for the decrease in net profit margin ratio over Q1 2024 is the decrease in operating profitability measured by EBIT margin ratio.