Broadcom Inc (AVGO)
Current ratio
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 1.17 | 2.82 | 2.62 | 2.64 | 1.87 |
November 3, 2024 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $19,595,000K ÷ $16,697,000K
= 1.17
Broadcom Inc's current ratio has fluctuated over the past five years. As of November 3, 2024, the current ratio stands at 1.17, which is lower than the ratios reported in the previous years. This indicates that the company may be facing challenges in meeting its short-term obligations with its current assets. The current ratio peaked at 2.82 on October 29, 2023, suggesting a strong ability to cover short-term liabilities with current assets at that point in time. However, the ratio has since decreased to 2.62 on October 30, 2022, and further declined to 2.64 on October 31, 2021. The lowest current ratio reported was 1.87 on November 1, 2020, signifying a potential liquidity strain compared to the other years. Overall, the downward trend in the current ratio from 2023 to 2024 raises concerns about Broadcom Inc's short-term liquidity position and its ability to meet its current obligations.
Peer comparison
Nov 3, 2024