Broadcom Inc (AVGO)
Inventory turnover
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 11,129,000 | 11,108,000 | 10,606,000 | 10,372,000 | 10,114,000 |
| Inventory | US$ in thousands | 1,898,000 | 1,925,000 | 1,297,000 | 1,003,000 | 874,000 |
| Inventory turnover | 5.86 | 5.77 | 8.18 | 10.34 | 11.57 |
October 29, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $11,129,000K ÷ $1,898,000K
= 5.86
The inventory turnover of Broadcom Inc has fluctuated over the past five years, as indicated by the following figures: 4.89 in 2023, 4.29 in 2022, 5.52 in 2021, 6.50 in 2020, and 7.69 in 2019. This metric reflects the number of times the company's inventory was sold and replaced during each respective fiscal year. The decreasing trend in inventory turnover may indicate that Broadcom Inc is holding onto its inventory for a longer period before it is sold, which could tie up working capital and potentially lead to obsolescence or write-offs. However, it is essential to consider industry benchmarks and the company's specific circumstances when drawing conclusions about the efficiency of its inventory management.
Peer comparison
Oct 29, 2023