Broadcom Inc (AVGO)
Inventory turnover
| Nov 3, 2024 | Aug 4, 2024 | May 5, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 19,065,000 | 16,901,000 | 14,897,000 | 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 |
| Inventory | US$ in thousands | 1,760,000 | 1,894,000 | 1,842,000 | 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 |
| Inventory turnover | 10.83 | 8.92 | 8.09 | 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 |
November 3, 2024 calculation
Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $19,065,000K ÷ $1,760,000K
= 10.83
Broadcom Inc's inventory turnover has fluctuated over the past few years, ranging from a low of 5.77 to a high of 11.01. Inventory turnover measures how efficiently a company is managing its inventory by showing how many times inventory is sold and replaced within a specific period.
A higher inventory turnover ratio is generally preferred, as it indicates that the company is selling goods quickly and not holding onto excess inventory. A lower ratio could suggest inefficiencies in inventory management or potentially slower sales.
Broadcom's inventory turnover has generally been above 5, indicating that the company is efficient in managing its inventory and converting it into sales. The ratio has shown some variability, possibly influenced by factors such as changes in demand, production efficiency, or inventory management practices.
Overall, a consistent and healthy inventory turnover ratio reflects positively on Broadcom's operations, indicating effective inventory management and a proactive approach to meeting customer demand.
Peer comparison
Nov 3, 2024
Nov 3, 2024