Broadcom Inc (AVGO)

Inventory turnover

		Feb 4, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Nov 1, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Nov 3, 2019	Aug 4, 2019	May 5, 2019
Cost of revenue (ttm)	US$ in thousands	12,804,000	11,129,000	11,245,000	11,316,000	11,362,000	11,108,000	10,873,000	10,671,000	10,560,000	10,606,000	10,557,000	10,481,000	10,481,000	10,372,000	10,276,000	10,252,000	10,127,000	10,114,000	9,999,000	9,962,000
Inventory	US$ in thousands	1,920,000	1,898,000	1,842,000	1,886,000	1,899,000	1,925,000	1,838,000	1,668,000	1,520,000	1,297,000	1,160,000	1,004,000	952,000	1,003,000	1,081,000	953,000	944,000	874,000	1,091,000	1,034,000
Inventory turnover		6.67	5.86	6.10	6.00	5.98	5.77	5.92	6.40	6.95	8.18	9.10	10.44	11.01	10.34	9.51	10.76	10.73	11.57	9.16	9.63

February 4, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $12,804,000K ÷ $1,920,000K
= 6.67

Inventory turnover for Broadcom Inc has shown fluctuations over the past 20 quarters. The ratio ranged from a low of 5.77 to a high of 11.57, with an average of approximately 8.74. The trend indicates that the company has been effectively managing its inventory levels, with higher turnover ratios suggesting efficient inventory management practices. It is worth noting that the ratio peaked at 11.57 in Nov 2019, indicating a significant improvement in inventory turnover efficiency during that period. However, the ratio has shown some variability in recent quarters, possibly due to changes in demand, production, or supply chain disruptions. Overall, Broadcom Inc's inventory turnover has been relatively healthy, reflecting a balance between stocking an adequate level of inventory to meet demand and minimizing excess inventory holding costs.