Broadcom Inc (AVGO)
Operating return on assets (Operating ROA)
| Nov 3, 2024 | Aug 4, 2024 | May 5, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 13,463,000 | 13,076,000 | 13,144,000 | 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 |
| Total assets | US$ in thousands | 165,645,000 | 167,966,000 | 175,211,000 | 177,870,000 | 72,861,000 | 71,595,000 | 71,667,000 | 72,976,000 | 73,249,000 | 71,326,000 | 71,719,000 | 73,224,000 | 75,570,000 | 75,880,000 | 75,524,000 | 76,972,000 | 75,933,000 | 79,298,000 | 81,548,000 | 81,006,000 |
| Operating ROA | 8.13% | 7.78% | 7.50% | 7.98% | 22.24% | 22.28% | 22.09% | 20.86% | 19.42% | 17.97% | 15.63% | 13.37% | 11.27% | 9.84% | 8.40% | 6.67% | 5.29% | 4.47% | 4.17% | 4.45% |
November 3, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $13,463,000K ÷ $165,645,000K
= 8.13%
Operating return on assets (ROA) measures a company's ability to generate profits from its operating activities relative to its total assets. Broadcom Inc's operating ROA has exhibited fluctuations over the past several quarters, with values ranging from 4.17% to 22.28%.
The operating ROA for the most recent quarter, November 3, 2024, stood at 8.13%, indicating that the company generated $0.0813 in operating income for every dollar of assets it holds. This suggests a moderate level of efficiency in utilizing its assets to generate profits from its core operations.
The trend in operating ROA over the past few quarters shows a general decline from the peak of 22.28% in July 30, 2023, to the current 8.13% in November 3, 2024. This downward trend may indicate challenges in maintaining profitability levels relative to asset utilization, potentially signaling factors such as increased operating expenses, lower revenue generation, or changes in asset structure.
It is important for investors and analysts to closely monitor Broadcom Inc's operating ROA trends to assess the company's operational efficiency and profitability levels. Further analysis and consideration of the company's industry dynamics and specific business strategies would provide additional insights into the drivers behind the fluctuations in the operating ROA.
Peer comparison
Nov 3, 2024