Broadcom Inc (AVGO)
Quick ratio
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 9,348,000 | 14,189,000 | 12,416,000 | 12,163,000 | 7,618,000 |
| Short-term investments | US$ in thousands | — | — | — | — | — |
| Receivables | US$ in thousands | 4,416,000 | 3,154,000 | 2,958,000 | 2,071,000 | 2,297,000 |
| Total current liabilities | US$ in thousands | 16,697,000 | 7,405,000 | 7,052,000 | 6,281,000 | 6,371,000 |
| Quick ratio | 0.82 | 2.34 | 2.18 | 2.27 | 1.56 |
November 3, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,348,000K
+ $—K
+ $4,416,000K)
÷ $16,697,000K
= 0.82
The quick ratio of Broadcom Inc has been fluctuating over the past five years, ranging from a low of 0.82 to a high of 2.34. In general, a quick ratio above 1 indicates that the company has sufficient liquid assets to cover its short-term liabilities.
The significant drop in the quick ratio from 2.34 in 2023 to 0.82 in 2024 raises concerns about Broadcom's liquidity position. A quick ratio below 1 may suggest that the company may struggle to meet its short-term obligations with its current liquid assets.
However, it is important to note that the quick ratio alone may not provide a full picture of a company's liquidity and financial health. Other financial ratios and factors should be considered in conjunction with the quick ratio analysis to have a more comprehensive view of Broadcom's overall financial stability.
Peer comparison
Nov 3, 2024