Broadcom Inc (AVGO)
Return on equity (ROE)
| 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 stockholders’ equity | US$ in thousands | 23,988,000 | 22,709,000 | 24,989,000 | 23,901,000 | 24,941,000 |
| ROE | 58.70% | 50.62% | 26.96% | 12.38% | 10.92% |
October 29, 2023 calculation
ROE = Net income ÷ Total stockholders’ equity
= $14,082,000K ÷ $23,988,000K
= 58.70%
Broadcom Inc's return on equity (ROE) has been showing a positive trend over the past five years, reflecting the company's efficient use of shareholders' equity to generate profits. The ROE increased from 10.79% in 2019 to 58.70% in 2023, indicating significant improvement in the company's ability to generate income from shareholders' investments.
The substantial rise in ROE from 2019 to 2023 suggests that Broadcom Inc has been effectively leveraging its equity to generate higher returns for its shareholders. This indicates a strong operational efficiency, effective cost management, or possibly improved revenue generation.
The consistent growth in ROE demonstrates the company's ability to create value for its shareholders and potentially indicates a competitive advantage in its industry. Furthermore, the significant difference between the ROE for 2023 and previous years suggests that the company has potentially improved its profitability and efficiency in capital utilization.
Overall, the trend in Broadcom Inc's ROE reveals a positive financial performance and efficient utilization of its shareholders' equity, which is a positive indicator for the company's financial health and potential for future growth.
Peer comparison
Oct 29, 2023