Broadcom Inc (AVGO)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	10.83	8.92	8.09	6.67	5.86	6.10	6.00	5.98	5.77	5.92	6.40	6.95	8.18	9.10	10.44	11.01	10.34	9.51	10.76	10.73
Receivables turnover	11.68	10.04	7.75	7.82	11.36	12.17	11.56	10.64	11.22	11.70	—	11.23	13.25	—	—	9.78	10.40	—	—	—
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
Working capital turnover	17.80	64.48	8.31	5.70	2.66	3.23	3.38	3.03	2.90	3.58	3.80	3.15	2.66	2.90	3.27	3.25	4.32	3.32	3.00	5.19

Inventory turnover, which measures how many times a company's inventory is sold and replaced over a specific period, shows an improving trend for Broadcom Inc. The ratio increased from 10.76 in Feb 2020 to 10.83 in Nov 2024, indicating that the company is managing its inventory well and selling its products efficiently.

Receivables turnover, representing how quickly a company collects payments from its customers, has been fluctuating over the periods analyzed. It peaked at 13.25 in Jan 2022 but dropped to 7.75 in May 2024. The ratio has shown some inconsistency in collection efficiency, which may require attention from management to streamline the collection process.

Payables turnover, which indicates how fast a company pays its suppliers, has also been variable. The ratio ranged from 8.33 in Aug 2020 to 15.27 in Jul 2022, suggesting fluctuations in the payment practices of Broadcom Inc. Overall, the company has been managing its payables effectively, with the ratio hovering around 10 on average.

Working capital turnover reflects how efficiently a company utilizes its working capital to generate sales revenue. The ratio saw a significant increase from 2.66 in Oct 2021 to 64.48 in Aug 2024, indicating a vast improvement in the company's ability to generate sales relative to its working capital. However, the ratio dropped to 17.80 in Nov 2024, showing some volatility in the efficiency of working capital utilization.

In summary, Broadcom Inc has shown improvements in inventory turnover and working capital turnover, signaling operational efficiency. However, there have been fluctuations in receivables turnover and payables turnover, suggesting the need for better management of collections and payments.

Average number of days

		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
Days of inventory on hand (DOH)	days	33.70	40.90	45.13	54.73	62.25	59.79	60.83	61.00	63.25	61.70	57.05	52.54	44.64	40.11	34.96	33.15	35.30	38.40	33.93	34.02
Days of sales outstanding (DSO)	days	31.25	36.37	47.10	46.67	32.14	30.00	31.57	34.30	32.52	31.20	—	32.52	27.54	—	—	37.32	35.10	—	—	—
Number of days of payables	days	31.82	37.94	35.31	42.65	39.68	32.20	26.80	29.65	32.79	23.90	36.56	37.26	37.37	33.47	28.90	31.27	29.42	38.79	43.79	35.50

Days of inventory on hand (DOH) measures how many days it takes for a company to sell its current inventory. A lower DOH indicates more efficient inventory management. Over the past quarters, Broadcom Inc has shown some fluctuations in its DOH, ranging from a low of 33.15 days to a high of 63.25 days. From May 2022 to Nov 2023, the trend was an increase in DOH, suggesting a possible buildup of inventory or slower sales. However, in the most recent quarter, the DOH decreased to 33.70 days, which could indicate improved inventory turnover efficiency.

Days of sales outstanding (DSO) reflects how long it takes for a company to collect its accounts receivable. A lower DSO is generally favorable as it indicates faster collections. Broadcom Inc has seen fluctuations in its DSO over the periods provided, ranging from 27.54 days to 47.10 days. The company showed a decrease in DSO from Feb 2024 to Oct 2024, indicating improvements in collecting receivables. However, DSO increased in the most recent quarter to 31.25 days, which suggests a longer collection period compared to the prior quarter.

Number of days of payables represents how long it takes for a company to pay its suppliers. A higher number of days of payables indicates that the company is taking longer to pay its bills, which can be beneficial for cash flow management. Broadcom Inc has shown some variability in its payables period, with values ranging from 23.90 days to 43.79 days. The data suggests that the company might be managing its payables efficiently, as it has maintained a relatively stable number of days of payables over the past quarters.

Overall, analyzing Broadcom Inc's activity ratios reveals some fluctuations in inventory, accounts receivable, and accounts payable management over the specified periods, reflecting potential changes in operational efficiency and cash flow management.

Long-term

	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
Fixed asset turnover	20.46	17.99	15.97	14.60	16.63	16.26	15.86	15.63	14.94	14.08	13.26	12.38	11.69	11.19	10.58	9.89	9.52	9.04	8.74	8.66
Total asset turnover	0.31	0.28	0.24	0.22	0.49	0.50	0.49	0.47	0.45	0.44	0.42	0.39	0.36	0.35	0.34	0.32	0.31	0.29	0.28	0.28

Broadcom Inc's long-term activity ratios, specifically the fixed asset turnover and total asset turnover, provide insights into the efficiency with which the company utilizes its assets to generate revenue.

1. Fixed Asset Turnover: This ratio measures how effectively the company uses its fixed assets to generate sales. The increasing trend in Broadcom Inc's fixed asset turnover ratio over the past years indicates improving efficiency in utilizing its fixed assets, with a ratio of 20.46 in November 2024 compared to 8.66 in February 2020. This suggests that the company is generating more revenue per dollar invested in fixed assets, which is a positive indicator of operational efficiency.

2. Total Asset Turnover: This ratio indicates how efficiently the company generates sales from all its assets. Broadcom Inc's total asset turnover ratio has fluctuated over the years but has generally shown an increasing trend from 0.28 in February 2020 to 0.31 in November 2024. Although the ratio is relatively low, the upward trend signifies improved efficiency in generating sales from its total assets.

Overall, the improving trend in both fixed asset turnover and total asset turnover ratios suggests that Broadcom Inc has been effectively managing its assets to drive revenue growth and enhance operational efficiency over the analyzed period.