Broadcom Inc (AVGO)
Return on assets (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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | 11,633,000 | 14,082,000 | 13,917,000 | 13,688,000 | 12,797,000 | 11,495,000 | 10,125,000 | 8,927,000 | 7,830,000 | 6,736,000 | 6,071,000 | 4,883,000 | 3,953,000 | 2,960,000 | 2,483,000 | 2,510,000 | 2,638,000 | 2,724,000 | 2,992,000 | 3,473,000 |
| 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 |
| ROA | 6.54% | 19.33% | 19.44% | 19.10% | 17.54% | 15.69% | 14.20% | 12.45% | 10.69% | 8.91% | 8.00% | 6.47% | 5.14% | 3.90% | 3.13% | 3.08% | 3.26% | 4.04% | 4.29% | 4.90% |
February 4, 2024 calculation
ROA = Net income (ttm) ÷ Total assets
= $11,633,000K ÷ $177,870,000K
= 6.54%
Broadcom Inc's return on assets (ROA) has shown a fluctuating trend over the past few quarters. The ROA has ranged from a low of 3.08% in May 3, 2020, to a high of 19.44% in Jul 30, 2023. This indicates that the company has been able to efficiently generate profits relative to its total assets, with the highest efficiency observed in July 2023.
The declining trend from 2019 to mid-2021, where the ROA decreased from 4.90% to 6.47%, may indicate a period of lower efficiency in asset utilization. However, the subsequent increase in ROA to around 19% in 2023 suggests an improvement in the company's ability to generate earnings from its assets.
Investors and analysts may view Broadcom Inc's increasing ROA positively as it indicates the company's effective use of its assets to generate profits. Continuing to maintain or improve ROA levels can be important for sustaining profitability and creating value for shareholders in the long term.
Peer comparison
Feb 4, 2024