Broadcom Inc (AVGO)
Operating profit margin
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 16,207,000 | 14,225,000 | 8,519,000 | 4,014,000 | 3,444,000 |
| Revenue | US$ in thousands | 35,819,000 | 33,203,000 | 27,450,000 | 23,888,000 | 22,597,000 |
| Operating profit margin | 45.25% | 42.84% | 31.03% | 16.80% | 15.24% |
October 29, 2023 calculation
Operating profit margin = Operating income ÷ Revenue
= $16,207,000K ÷ $35,819,000K
= 45.25%
Broadcom Inc's operating profit margin has shown a positive trend over the past five years. The operating profit margin increased from 18.84% in 2019 to 45.94% in 2023, indicating a consistent improvement in the company's ability to generate profits from its core business operations. This upward trajectory suggests that Broadcom has effectively managed its operating expenses and has been successful in maximizing its operating income relative to its revenue. The significant rise in the operating profit margin indicates improved efficiency and profitability, which could be attributed to effective cost management, increased sales volumes, or a favorable product mix. Overall, the trend in Broadcom Inc's operating profit margin reflects positive operational performance and sustained financial health.
Peer comparison
Oct 29, 2023