Broadcom Inc (AVGO)
Total asset turnover
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 51,574,000 | 35,819,000 | 33,203,000 | 27,450,000 | 23,888,000 |
| Total assets | US$ in thousands | 165,645,000 | 72,861,000 | 73,249,000 | 75,570,000 | 75,933,000 |
| Total asset turnover | 0.31 | 0.49 | 0.45 | 0.36 | 0.31 |
November 3, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $51,574,000K ÷ $165,645,000K
= 0.31
Broadcom Inc's total asset turnover has shown variability over the past five years, ranging from 0.31 to 0.49. In general, the total asset turnover ratio measures how efficiently the company is utilizing its assets to generate revenue.
A higher total asset turnover ratio indicates that the company is generating more revenue per dollar of assets, which is generally viewed positively as it signifies efficient asset utilization. Conversely, a lower total asset turnover ratio may indicate underutilization of assets, inefficiency in operations, or potentially excessive asset investment relative to revenue generation.
Analyzing the trend in Broadcom Inc's total asset turnover, we can observe fluctuations, with a peak at 0.49 in October 2023 and a low of 0.31 in November 2020. This variability could be attributed to changes in the company's operational efficiency, business strategies, or industry dynamics.
Overall, further analysis in conjunction with other financial metrics and industry benchmarks would be necessary to gain a comprehensive understanding of Broadcom Inc's asset utilization efficiency and performance in generating revenue relative to its asset base.
Peer comparison
Nov 3, 2024