Broadcom Inc (AVGO)
Fixed asset turnover
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 51,574,000 | 35,819,000 | 33,203,000 | 27,450,000 | 23,888,000 |
| Property, plant and equipment | US$ in thousands | 2,521,000 | 2,154,000 | 2,223,000 | 2,348,000 | 2,509,000 |
| Fixed asset turnover | 20.46 | 16.63 | 14.94 | 11.69 | 9.52 |
November 3, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $51,574,000K ÷ $2,521,000K
= 20.46
Broadcom Inc's fixed asset turnover has been consistently improving over the past five years, indicating an increasing efficiency in generating revenue from its fixed assets. The ratio has shown a strong upward trend, from 9.52 in November 2020 to 20.46 in November 2024. This suggests that the company has been able to generate $20.46 in sales for every dollar invested in fixed assets in 2024, compared to $9.52 in 2020.
The significant increase in fixed asset turnover signifies that Broadcom Inc has been effectively utilizing its fixed assets to drive revenue growth and maximize operational efficiency. This improvement may be attributed to better asset management practices, operational enhancements, or strategic investments in technology and infrastructure.
Overall, the upward trajectory of Broadcom Inc's fixed asset turnover ratio reflects the company's commitment to optimizing asset utilization and generating higher returns on its fixed asset base.
Peer comparison
Nov 3, 2024