Broadcom Inc (AVGO)
Payables 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 |
| Payables | US$ in thousands | 1,210,000 | 998,000 | 1,086,000 | 836,000 | 855,000 |
| Payables turnover | 9.20 | 11.13 | 9.77 | 12.41 | 11.83 |
October 29, 2023 calculation
Payables turnover = Cost of revenue ÷ Payables
= $11,129,000K ÷ $1,210,000K
= 9.20
Broadcom Inc's payables turnover ratio has fluctuated over the past five years. The payables turnover was 7.66 in 2023, compared to 8.27 in 2022, 6.59 in 2021, 7.80 in 2020, and 7.86 in 2019. The decreasing trend from 2019 to 2021 indicates that the company took longer to pay its suppliers during those years. However, the increase in 2022 followed by a decrease in 2023 suggests that the company may have improved its payment efficiency in the short term. Overall, a decreasing trend in payables turnover may imply a potential strain on working capital and relationships with suppliers, while an increasing trend could indicate improved efficiency and better management of payables.
Peer comparison
Oct 29, 2023