Broadcom Inc (AVGO)
Cash ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 14,189,000 | 12,416,000 | 12,163,000 | 7,618,000 | 5,055,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 7,405,000 | 7,052,000 | 6,281,000 | 6,371,000 | 6,899,000 |
| Cash ratio | 1.92 | 1.76 | 1.94 | 1.20 | 0.73 |
October 29, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($14,189,000K
+ $—K)
÷ $7,405,000K
= 1.92
To analyze the cash ratio of Broadcom Inc over the past five years, we observe a generally increasing trend. The cash ratio, which measures the company's ability to cover its short-term liabilities with its cash and cash equivalents, has shown a consistent improvement from 0.84 in 2019 to 2.13 in 2023. This indicates that Broadcom has increased its liquidity position and has a higher ability to meet its short-term obligations using available cash and cash equivalents.
The upward trend in the cash ratio suggests that the company has been effectively managing its cash resources, potentially through efficient cash flow management and prudent investment of excess cash. It also reflects positively on Broadcom's financial stability and ability to weather potential economic downturns or operational challenges. This data indicates a strong and improving liquidity position for Broadcom Inc.
Peer comparison
Oct 29, 2023