Broadcom Inc (AVGO)
Return on total capital
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 13,596,000 | 16,207,000 | 14,225,000 | 8,519,000 | 4,014,000 |
| Long-term debt | US$ in thousands | 65,022,000 | 33,181,000 | 33,014,000 | 41,235,000 | 40,235,000 |
| Total stockholders’ equity | US$ in thousands | 67,678,000 | 23,988,000 | 22,709,000 | 24,989,000 | 23,901,000 |
| Return on total capital | 10.25% | 28.35% | 25.53% | 12.86% | 6.26% |
November 3, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $13,596,000K ÷ ($65,022,000K + $67,678,000K)
= 10.25%
Broadcom Inc's return on total capital has been fluctuating over the past five years. The return on total capital was 10.25% as of November 3, 2024, significantly lower than the 28.35% reported as of October 29, 2023. This could indicate a potential decline in the company's efficiency in generating profits from its total capital investments. However, the return on total capital for November 3, 2024, remains higher than the figures reported for October 30, 2022, and November 1, 2020, which were 25.53% and 6.26%, respectively. It is important for investors and stakeholders to further investigate the reasons behind the fluctuations in Broadcom Inc's return on total capital to assess the company's financial performance and sustainability in the long term.
Peer comparison
Nov 3, 2024