Broadcom Inc (AVGO)
Cash ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 9,348,000 | 9,952,000 | 9,809,000 | 11,864,000 | 14,189,000 | 12,055,000 | 11,553,000 | 12,647,000 | 12,416,000 | 9,977,000 | 9,005,000 | 10,219,000 | 12,163,000 | 11,105,000 | 9,518,000 | 9,552,000 | 7,618,000 | 8,857,000 | 9,207,000 | 6,444,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Cash ratio | 0.56 | 0.52 | 0.49 | 0.58 | 1.92 | 1.64 | 1.54 | 1.69 | 1.76 | 1.49 | 1.30 | 1.63 | 1.94 | 1.71 | 1.48 | 1.43 | 1.20 | 1.32 | 1.39 | 0.83 |
November 3, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,348,000K
+ $—K)
÷ $16,697,000K
= 0.56
The cash ratio of Broadcom Inc has shown some fluctuations over the past several quarters. The cash ratio measures a company's ability to cover its current liabilities solely based on its cash and cash equivalents. A higher cash ratio indicates a stronger liquidity position.
Broadcom's cash ratio has been relatively healthy, hovering above 1.0 in most of the periods, indicating that the company has sufficient cash reserves to cover its short-term obligations. The ratio peaked at 1.94 in October 2021, suggesting a robust liquidity position at that time.
The cash ratio dipped to 0.56 in November 2024, which may raise concerns about the company's ability to meet its short-term obligations solely with its available cash. However, it's important to note that the cash ratio can fluctuate due to various factors, such as changes in cash holdings or current liabilities.
Overall, while Broadcom Inc has generally maintained a solid cash ratio above 1.0, investors and analysts may want to monitor future changes in the ratio to ensure the company's continued ability to meet its short-term financial obligations from its cash reserves.
Peer comparison
Nov 3, 2024