Broadcom Inc (AVGO)
Gross profit margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit (ttm) | US$ in thousands | 26,061,000 | 24,690,000 | 24,209,000 | 23,726,000 | 23,050,000 | 22,095,000 | 20,807,000 | 19,323,000 | 17,941,000 | 16,844,000 | 15,953,000 | 15,072,000 | 14,204,000 | 13,516,000 | 12,921,000 | 12,639,000 | 12,539,000 | 12,483,000 | 12,266,000 | 11,851,000 |
| Revenue (ttm) | US$ in thousands | 38,865,000 | 35,819,000 | 35,454,000 | 35,042,000 | 34,412,000 | 33,203,000 | 31,680,000 | 29,994,000 | 28,501,000 | 27,450,000 | 26,510,000 | 25,553,000 | 24,685,000 | 23,888,000 | 23,197,000 | 22,891,000 | 22,666,000 | 22,597,000 | 22,265,000 | 21,813,000 |
| Gross profit margin | 67.06% | 68.93% | 68.28% | 67.71% | 66.98% | 66.55% | 65.68% | 64.42% | 62.95% | 61.36% | 60.18% | 58.98% | 57.54% | 56.58% | 55.70% | 55.21% | 55.32% | 55.24% | 55.09% | 54.33% |
February 4, 2024 calculation
Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $26,061,000K ÷ $38,865,000K
= 67.06%
Broadcom Inc's gross profit margin has shown a generally increasing trend over the past several quarters, indicating improved efficiency in generating profits from its core operations. The company's gross profit margin has ranged from 54.33% to 67.06% over the analyzed period, with recent figures ranging between 65% and 69%. This demonstrates strong profitability in relation to its cost of goods sold.
The upward trajectory in gross profit margin suggests that Broadcom has been effective in managing its production costs and optimizing its pricing strategies. Furthermore, the consistently high margins may indicate strong pricing power and competitive advantage within its industry.
Investors and stakeholders may view Broadcom's improving gross profit margin positively, as it reflects the company's ability to generate higher profits from each sale, potentially leading to increased cash flows and overall financial health. It is important for the company to sustain this trend by continuing to focus on operational efficiency and cost control initiatives.
Peer comparison
Feb 4, 2024