Broadcom Inc (AVGO)
Operating 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 14,187,000 | 16,207,000 | 15,953,000 | 15,834,000 | 15,220,000 | 14,225,000 | 12,820,000 | 11,209,000 | 9,790,000 | 8,519,000 | 7,464,000 | 6,346,000 | 5,137,000 | 4,014,000 | 3,542,000 | 3,399,000 | 3,603,000 | 3,444,000 | 4,042,000 | 4,516,000 |
| 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 |
| Operating profit margin | 36.50% | 45.25% | 45.00% | 45.19% | 44.23% | 42.84% | 40.47% | 37.37% | 34.35% | 31.03% | 28.16% | 24.83% | 20.81% | 16.80% | 15.27% | 14.85% | 15.90% | 15.24% | 18.15% | 20.70% |
February 4, 2024 calculation
Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $14,187,000K ÷ $38,865,000K
= 36.50%
The operating profit margin of Broadcom Inc has shown a generally increasing trend over the past several quarters, indicating improved operational efficiency and profitability. It peaked at 45.25% in October 2023 and remained relatively stable around the mid-40% range until early 2024 when it declined to 36.50%.
The company's ability to generate operating profit from its core business activities has been strong, with margins consistently above 30% in recent quarters. This suggests effective cost management and revenue generation strategies. The dip in the operating profit margin in February 2024 may require further investigation to determine the underlying reasons.
Overall, Broadcom Inc's operating profit margin performance demonstrates a solid financial health and operational strength, reflecting positively on its ability to generate profits relative to its operating costs. Continued monitoring of this key financial metric will be important to assess the company's ongoing profitability and efficiency.
Peer comparison
Feb 4, 2024