Broadcom Inc (AVGO)
Payables turnover
| 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 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cost of revenue (ttm) | US$ in thousands | 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 | 10,114,000 | 9,999,000 | 9,962,000 |
| Payables | US$ in thousands | 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 | 855,000 | 996,000 | 759,000 |
| Payables turnover | 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 | 11.83 | 10.04 | 13.13 |
February 4, 2024 calculation
Payables turnover = Cost of revenue (ttm) ÷ Payables
= $12,804,000K ÷ $1,496,000K
= 8.56
Broadcom Inc's payables turnover ratio has fluctuated over the past few quarters, with values ranging from 8.33 to 15.27. The payables turnover indicates how efficiently the company is managing its accounts payable by measuring the number of times the company pays off its suppliers in a given period.
A higher payables turnover ratio generally suggests that the company is efficiently managing its payables by paying off its suppliers more frequently. In this case, Broadcom Inc's payables turnover ratio has shown some variability, indicating potential changes in the company's payment practices.
It is important to note that a consistently low payables turnover ratio could suggest that the company is taking longer to pay its suppliers, which may have implications for supplier relationships and potential liquidity issues. On the other hand, a very high payables turnover ratio could indicate that the company is paying off its payables too quickly, potentially impacting cash flow management.
Overall, monitoring Broadcom Inc's payables turnover ratio over time can provide insights into the company's liquidity management and supplier relationships, helping stakeholders assess the company's financial health and operational efficiency.
Peer comparison
Feb 4, 2024