Broadcom Inc (AVGO)
Working capital 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (ttm) | US$ in thousands | 51,574,000 | 46,815,000 | 42,619,000 | 38,865,000 | 35,819,000 | 35,454,000 | 35,042,000 | 34,412,000 | 33,203,000 | 31,680,000 | 29,994,000 | 28,501,000 | 27,450,000 | 26,510,000 | 25,553,000 | 24,685,000 | 23,888,000 | 23,197,000 | 22,891,000 | 22,666,000 |
| Total current assets | US$ in thousands | 19,595,000 | 19,947,000 | 25,302,000 | 27,192,000 | 20,847,000 | 18,333,000 | 17,871,000 | 18,836,000 | 18,504,000 | 15,561,000 | 14,810,000 | 15,341,000 | 16,586,000 | 15,636,000 | 14,245,000 | 14,300,000 | 11,895,000 | 13,681,000 | 14,222,000 | 12,109,000 |
| Total current liabilities | US$ in thousands | 16,697,000 | 19,221,000 | 20,171,000 | 20,369,000 | 7,405,000 | 7,345,000 | 7,511,000 | 7,483,000 | 7,052,000 | 6,702,000 | 6,910,000 | 6,287,000 | 6,281,000 | 6,501,000 | 6,436,000 | 6,694,000 | 6,371,000 | 6,702,000 | 6,601,000 | 7,739,000 |
| 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 |
November 3, 2024 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $51,574,000K ÷ ($19,595,000K – $16,697,000K)
= 17.80
Broadcom Inc's working capital turnover ratio fluctuated over the past few years, with significant variations observed from period to period. The company's working capital turnover ratio ranged from a low of 2.66 to a high of 64.48, indicating a wide variance in how efficiently the company is utilizing its working capital to generate revenue.
A high working capital turnover ratio, such as the peak of 64.48 in August 2024, suggests that Broadcom Inc efficiently manages its working capital to support its operations and generate sales. Conversely, lower ratios, like the low of 2.66 in February 2020, may indicate inefficiencies or challenges in managing working capital effectively.
It is important to note the substantial fluctuations in the working capital turnover ratio over the period analyzed, suggesting potential changes in the company's operating efficiency and financial management practices. Further analysis of the company's working capital components and operational strategies may provide deeper insights into these fluctuations and their implications for Broadcom Inc's overall financial performance.
Peer comparison
Nov 3, 2024