Broadcom Inc (AVGO)
Payables 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 |
| Payables | US$ in thousands | 1,662,000 | 1,757,000 | 1,441,000 | 1,496,000 | 1,210,000 | 992,000 | 831,000 | 923,000 | 998,000 | 712,000 | 1,069,000 | 1,078,000 | 1,086,000 | 968,000 | 830,000 | 898,000 | 836,000 | 1,092,000 | 1,230,000 | 985,000 |
| Payables turnover | 11.47 | 9.62 | 10.34 | 8.56 | 9.20 | 11.34 | 13.62 | 12.31 | 11.13 | 15.27 | 9.98 | 9.80 | 9.77 | 10.91 | 12.63 | 11.67 | 12.41 | 9.41 | 8.33 | 10.28 |
November 3, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $19,065,000K ÷ $1,662,000K
= 11.47
Broadcom Inc's payables turnover ratio shows the efficiency with which the company is managing its accounts payable. The trend in the payables turnover ratio indicates how quickly the company is paying off its suppliers relative to the amount owed to them.
From the data provided, we observe fluctuations in the payables turnover ratio over the past several quarters. The payables turnover ratio has varied between 8.33 and 15.27, with an average ratio of approximately 10.89.
An increasing payables turnover ratio typically implies that the company is paying its suppliers more quickly, which could be a positive sign. Conversely, a decreasing ratio may indicate that the company is taking longer to pay its bills.
It is worth noting that the payables turnover ratio should be interpreted in conjunction with other financial metrics and industry benchmarks for a more comprehensive analysis of Broadcom Inc's financial performance and liquidity management. Additional information about the company's payment terms, supplier relationships, and industry dynamics would provide more context for evaluating the implications of the payables turnover ratio.
Peer comparison
Nov 3, 2024