Broadcom Inc (AVGO)
Working capital 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 current assets | US$ in thousands | 19,595,000 | 20,847,000 | 18,504,000 | 16,586,000 | 11,895,000 |
| Total current liabilities | US$ in thousands | 16,697,000 | 7,405,000 | 7,052,000 | 6,281,000 | 6,371,000 |
| Working capital turnover | 17.80 | 2.66 | 2.90 | 2.66 | 4.32 |
November 3, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $51,574,000K ÷ ($19,595,000K – $16,697,000K)
= 17.80
Broadcom Inc's working capital turnover has shown significant improvement from 4.32 in November 2020 to 17.80 in November 2024. This indicates that the company is more efficient in utilizing its working capital to generate sales revenue. The substantial increase in working capital turnover over the years suggests that Broadcom has been able to optimize its working capital management and operational efficiency. This improvement may be attributed to better inventory management, tighter credit policies, or more effective receivables collection processes. Overall, the increasing trend in working capital turnover reflects positively on Broadcom's ability to efficiently convert its working capital into sales and drive overall financial performance.
Peer comparison
Nov 3, 2024