Broadcom Inc (AVGO)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 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 | 67,493,000 | 69,767,000 | 70,916,000 |
| Operating ROA | 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% | 5.10% | 5.79% | 6.37% |
February 4, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $14,187,000K ÷ $177,870,000K
= 7.98%
Broadcom Inc's operating return on assets (ROA) has shown a fluctuating trend over the provided period. The operating ROA started at 6.37% in May 2019 and gradually increased to reach a peak of 22.28% in July 2023. This significant improvement indicates a strong operational efficiency and profitability during that period. However, the operating ROA experienced a decline in the latest reported period at 7.98% as of February 2024.
The varying operating ROA reflects the company's ability to generate profits from its operational assets. A higher operating ROA signifies that Broadcom Inc is utilizing its assets efficiently to generate operating income. Conversely, a lower operating ROA may indicate inefficiencies in asset utilization or decreasing operational profitability.
It is essential for stakeholders to monitor Broadcom Inc's operating ROA consistently to assess the company's operational performance and efficiency in generating profits relative to its assets. Additional analysis and comparisons with industry peers or historical data may provide more insights into the company's financial health and operational effectiveness.
Peer comparison
Feb 4, 2024