Broadcom Inc (AVGO)
Cash ratio
| 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 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 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 | 5,055,000 | 5,462,000 | 5,328,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 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 | 6,899,000 | 8,282,000 | 8,503,000 |
| Cash ratio | 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 | 0.73 | 0.66 | 0.63 |
February 4, 2024 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($11,864,000K
+ $—K)
÷ $20,369,000K
= 0.58
The cash ratio for Broadcom Inc has shown fluctuations over the past few quarters. The cash ratio measures the company's ability to cover its short-term obligations with its cash and cash equivalents. In general, a higher cash ratio indicates a stronger ability to meet short-term liabilities.
Looking at the data, the cash ratio for Broadcom Inc ranged from 0.58 to 1.94 over the last few quarters. The lowest cash ratio was observed in February 2020 at 0.58, implying that the company had limited cash reserves relative to its short-term obligations at that time. On the other hand, the highest cash ratio was seen in October 2021 at 1.94, indicating a significant improvement in the company's liquidity position.
Overall, Broadcom Inc's cash ratio has generally been above 1, which suggests that the company has had sufficient cash on hand to cover its short-term liabilities in most periods. However, the fluctuations in the cash ratio indicate changes in the company's cash position and its ability to manage short-term obligations effectively. Further analysis of the company's cash flow and liquidity management practices could provide more insights into the factors driving these fluctuations in the cash ratio.
Peer comparison
Feb 4, 2024