Broadcom Inc (AVGO)
Quick ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 14,189,000 | 12,416,000 | 12,163,000 | 7,618,000 | 5,055,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 3,154,000 | 2,958,000 | 2,071,000 | 2,297,000 | 3,259,000 |
| Total current liabilities | US$ in thousands | 7,405,000 | 7,052,000 | 6,281,000 | 6,371,000 | 6,899,000 |
| Quick ratio | 2.34 | 2.18 | 2.27 | 1.56 | 1.21 |
October 29, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($14,189,000K
+ $—K
+ $3,154,000K)
÷ $7,405,000K
= 2.34
The quick ratio of Broadcom Inc has shown a consistent upward trend over the past five years. As of October 29, 2023, the quick ratio stands at 2.56, indicating strong liquidity and the company's ability to meet its short-term obligations using its most liquid assets. This ratio has improved from 2.35 and 2.43 in the previous two years, reflecting positively on the company's short-term financial solvency. The significant increase from 1.71 in November 1, 2020, to 2.56 in October 29, 2023, signifies an enhancement in the company's ability to cover its current liabilities with its quick assets. This consistent improvement in the quick ratio suggests that Broadcom Inc is effectively managing its short-term liquidity and is well-positioned to meet its immediate financial obligations.
Peer comparison
Oct 29, 2023