Broadcom Inc (AVGO)
Current ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 20,847,000 | 18,504,000 | 16,586,000 | 11,895,000 | 9,917,000 |
| Total current liabilities | US$ in thousands | 7,405,000 | 7,052,000 | 6,281,000 | 6,371,000 | 6,899,000 |
| Current ratio | 2.82 | 2.62 | 2.64 | 1.87 | 1.44 |
October 29, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $20,847,000K ÷ $7,405,000K
= 2.82
Based on the information provided, Broadcom Inc's current ratio has shown a positive trend over the past five years. The current ratio, which measures the company's ability to meet short-term obligations with its current assets, has improved steadily from 1.44 in November 2019 to 2.82 in October 2023.
The upward trend in the current ratio indicates that Broadcom Inc has significantly strengthened its short-term liquidity position. This improvement suggests that the company is better equipped to cover its current liabilities using its current assets. The consistent increase in the current ratio reflects positively on the company's financial management and operational efficiency.
The current ratio of 2.82 as of October 29, 2023, indicates that Broadcom Inc had $2.82 in current assets for every $1 in current liabilities, reflecting a strong liquidity position. This suggests that the company has ample resources to meet its short-term financial obligations, such as paying off short-term debt and covering operating expenses.
Overall, the increasing trend in Broadcom Inc's current ratio signifies a strengthened financial position and a healthier liquidity outlook, providing a positive signal to investors and creditors about the company's ability to manage its short-term obligations.
Peer comparison
Oct 29, 2023