Broadcom Inc (AVGO)

Payables turnover

		Nov 3, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020
Cost of revenue	US$ in thousands	19,065,000	11,129,000	11,108,000	10,606,000	10,372,000
Payables	US$ in thousands	1,662,000	1,210,000	998,000	1,086,000	836,000
Payables turnover		11.47	9.20	11.13	9.77	12.41

November 3, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $19,065,000K ÷ $1,662,000K
= 11.47

Broadcom Inc's payables turnover ratio has exhibited fluctuating trends over the past five years. The ratio was 11.47 in November 2024, which indicates that the company paid off its accounts payable approximately 11.47 times during the year. This represents an improvement compared to the previous year's ratio of 9.20 in October 2023. The increasing trend in payables turnover suggests that Broadcom is managing its accounts payable more efficiently and paying off its obligations at a faster rate.

Furthermore, when comparing the current ratio to historical data, Broadcom's payables turnover was highest in November 2020 at 12.41, indicating even better management of accounts payable in that year. However, the ratio decreased in the following years before showing an uptick in November 2024.

Overall, the upward trend in payables turnover ratio suggests that Broadcom Inc has been more effective in managing its supplier credit and paying off its obligations in recent years. This improvement may be attributed to more efficient working capital management or better negotiation with suppliers.