Broadcom Inc (AVGO)

Operating return on assets (Operating ROA)

		Nov 3, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020
Operating income	US$ in thousands	13,463,000	16,207,000	14,225,000	8,519,000	4,014,000
Total assets	US$ in thousands	165,645,000	72,861,000	73,249,000	75,570,000	75,933,000
Operating ROA		8.13%	22.24%	19.42%	11.27%	5.29%

November 3, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $13,463,000K ÷ $165,645,000K
= 8.13%

Operating return on assets (operating ROA) is a key financial metric that evaluates a company's efficiency in generating operating profit from its assets. Based on the data provided for Broadcom Inc, we can see a fluctuating trend in the operating ROA over the past five years.

In Nov 3, 2024, the operating ROA decreased to 8.13%, indicating a decline in the company's ability to generate operating profit relative to its assets compared to the previous year. This decrease may suggest challenges in optimizing asset utilization and operational performance.

In comparison, Oct 29, 2023, reported a significantly higher operating ROA of 22.24%, reflecting a strong performance in converting assets into operating profit. This year could have been particularly efficient for Broadcom Inc in utilizing its assets to generate operating income.

Oct 30, 2022, also showed a favorable operating ROA of 19.42%, indicating continued efficiency in generating operating profit from assets, although slightly lower than the previous year. This suggests that the company maintained solid asset utilization and operational effectiveness.

On Oct 31, 2021, the operating ROA was 11.27%, demonstrating a moderate decrease compared to the previous year. This decline may indicate some challenges in optimizing asset efficiency and operational performance during this period.

Finally, on Nov 1, 2020, Broadcom Inc reported an operating ROA of 5.29%, which was the lowest among the years presented. This suggests that the company faced difficulties in efficiently generating operating profit from its assets in that period.

Overall, the trend in Broadcom Inc's operating ROA indicates fluctuations in the company's ability to effectively utilize its assets to generate operating profit over the past five years. Further analysis would be beneficial to identify the underlying reasons for these fluctuations and to assess the company's operational and financial performance more comprehensively.