Broadcom Inc (AVGO)
Quick 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 | 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 | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | 4,969,000 | 3,154,000 | 2,914,000 | 3,031,000 | 3,234,000 | 2,958,000 | 2,708,000 | — | 2,539,000 | 2,071,000 | — | — | 2,524,000 | 2,297,000 | — | — | — | — | — | — |
| 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 |
| Quick ratio | 0.83 | 2.34 | 2.04 | 1.94 | 2.12 | 2.18 | 1.89 | 1.30 | 2.03 | 2.27 | 1.71 | 1.48 | 1.80 | 1.56 | 1.32 | 1.39 | 0.83 | 0.73 | 0.66 | 0.63 |
February 4, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($11,864,000K
+ $—K
+ $4,969,000K)
÷ $20,369,000K
= 0.83
The quick ratio of Broadcom Inc has shown some variability over the past few quarters. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.
Broadcom Inc's quick ratio ranged from a low of 0.63 to a high of 2.34 in the provided data. A quick ratio below 1 indicates that the company may have difficulty meeting its short-term obligations, while a ratio above 1 signifies that the company has an adequate level of liquid assets to cover its short-term liabilities.
The quick ratio has fluctuated significantly over the periods analyzed, with some quarters showing a strong ability to cover short-term obligations (above 2) while others falling below the ideal threshold of 1. This implies that Broadcom's liquidity position has been somewhat inconsistent. It is important for investors and stakeholders to closely monitor changes in the quick ratio to assess the company's short-term financial health and ability to meet its obligations.
Peer comparison
Feb 4, 2024