Broadcom Inc (AVGO)
Return on assets (ROA)
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 14,082,000 | 11,495,000 | 6,736,000 | 2,960,000 | 2,724,000 |
| Total assets | US$ in thousands | 72,861,000 | 73,249,000 | 75,570,000 | 75,933,000 | 67,493,000 |
| ROA | 19.33% | 15.69% | 8.91% | 3.90% | 4.04% |
October 29, 2023 calculation
ROA = Net income ÷ Total assets
= $14,082,000K ÷ $72,861,000K
= 19.33%
Broadcom Inc's return on assets (ROA) has shown a consistent and significant increase over the past five years. The ROA rose from 3.99% in 2019 to 19.33% in 2023, indicating a steady improvement in the company's ability to generate profits from its assets. This upward trend suggests that Broadcom has been successful in effectively utilizing its assets to generate earnings.
The increase in ROA may indicate improvements in asset utilization, cost control, or revenue generation strategies. It also reflects positively on Broadcom's operational efficiency and management's ability to generate higher returns from the company's total assets. Overall, the consistent improvement in ROA suggests a positive outlook for Broadcom's financial performance and efficient use of its resources to drive profitability.
Peer comparison
Oct 29, 2023