Broadcom Inc (AVGO)

Net profit margin

		Nov 3, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020
Net income	US$ in thousands	5,895,000	14,082,000	11,495,000	6,736,000	2,960,000
Revenue	US$ in thousands	51,574,000	35,819,000	33,203,000	27,450,000	23,888,000
Net profit margin		11.43%	39.31%	34.62%	24.54%	12.39%

November 3, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $5,895,000K ÷ $51,574,000K
= 11.43%

Broadcom Inc's net profit margin has exhibited fluctuations over the past five years. In November 2020, the net profit margin stood at 12.39%, marking the beginning of an upward trend. Subsequently, there was a significant increase to 24.54% by October 2021, indicating improved profitability. The trend continued with a further rise to 34.62% by October 2022, reflecting the company's ability to effectively control costs and generate higher profits relative to revenue.

However, the net profit margin took a notable decline to 39.31% by October 2023, signaling a decrease in profitability compared to the previous year. This anomaly may warrant further investigation to identify the underlying factors impacting profitability. In November 2024, the net profit margin further reduced to 11.43%, suggesting a continuation of the downward trend observed in the previous year.

Overall, while Broadcom Inc demonstrated a strong ability to generate profits in recent years, the declining trend in net profit margin is a potential area of concern that may require attention to sustain and enhance the company's profitability in the future.