Broadcom Inc (AVGO)

Number of days of payables

		Nov 3, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020
Payables turnover		11.47	9.20	11.13	9.77	12.41
Number of days of payables	days	31.82	39.68	32.79	37.37	29.42

November 3, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 11.47
= 31.82

Broadcom Inc's number of days of payables has fluctuated over the past five years. In the most recent fiscal year ending November 3, 2024, the company had an average payment period of 31.82 days, indicating that on average, it took approximately 31.82 days for Broadcom to pay off its trade payables.

Comparing this to the previous four fiscal years, we observe variations in the length of the payment period. In fiscal year 2023, the number of days of payables was highest at 39.68 days, suggesting that Broadcom took longer to settle its payables during that period. In contrast, in fiscal year 2020, the company had the shortest payment period of 29.42 days, indicating more prompt payment to suppliers.

The trend in the number of days of payables can provide insights into Broadcom's liquidity management and relationship with suppliers. A decreasing trend may indicate improved efficiency in managing cash flows and negotiating favorable payment terms with suppliers. Conversely, an increasing trend could signal challenges in working capital management or strained relationships with vendors.

Overall, a detailed analysis of Broadcom Inc's number of days of payables over the five-year period can offer valuable insights into the company's financial performance and working capital management practices.