Broadcom Inc (AVGO)
Return on assets (ROA)
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 5,895,000 | 14,082,000 | 11,495,000 | 6,736,000 | 2,960,000 |
| Total assets | US$ in thousands | 165,645,000 | 72,861,000 | 73,249,000 | 75,570,000 | 75,933,000 |
| ROA | 3.56% | 19.33% | 15.69% | 8.91% | 3.90% |
November 3, 2024 calculation
ROA = Net income ÷ Total assets
= $5,895,000K ÷ $165,645,000K
= 3.56%
Broadcom Inc's return on assets (ROA) has shown fluctuating trends over the past five years. In the most recent fiscal year ending on November 3, 2024, the ROA stood at 3.56%, a considerable decline from the previous year's figure of 19.33%. This significant drop indicates a decrease in the company's ability to generate earnings from its assets compared to the prior year.
Looking at the historical data, we observe a pattern of varying ROA levels. The ROA was highest at 19.33% in October 29, 2023, which suggests a peak in asset efficiency and profitability before experiencing a decline. The ROA has generally been on an upward trajectory since November 1, 2020, when it was at 3.90%. This improvement highlights the company's efforts to enhance its asset utilization and profitability over the years.
Overall, Broadcom Inc's ROA performance indicates fluctuations in its asset efficiency and profitability levels. Investors and stakeholders may want to delve deeper into the factors influencing these fluctuations to assess the company's operational effectiveness and strategic direction.
Peer comparison
Nov 3, 2024