Broadcom Inc (AVGO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 67,678,000 | 23,988,000 | 22,709,000 | 24,989,000 | 23,901,000 |
| ROE | 8.71% | 58.70% | 50.62% | 26.96% | 12.38% |
November 3, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $5,895,000K ÷ $67,678,000K
= 8.71%
Broadcom Inc's return on equity (ROE) has fluctuated over the past five years. In the most recent fiscal year, ending on November 3, 2024, the ROE was 8.71%, which represents a significant decrease from the prior year's ROE of 58.70% as of October 29, 2023. This substantial decline in ROE suggests that the company's ability to generate profit from shareholders' equity has weakened.
Looking further back, Broadcom's ROE in fiscal year 2022 was 50.62%, indicating a strong performance in utilizing equity to generate profits. The ROE decreased to 26.96% in the fiscal year ending on October 31, 2021, but remained above the industry average. In the fiscal year ending on November 1, 2020, the ROE was 12.38%, showing an improvement but still lower than the 2022 and 2023 levels.
Overall, Broadcom's ROE has experienced fluctuations, with a notable decrease in the most recent fiscal year. This could be a signal for investors and analysts to closely monitor the company's financial performance and management of shareholders' equity in the upcoming periods.
Peer comparison
Nov 3, 2024