Broadcom Inc (AVGO)
Return on total capital
| Nov 3, 2024 | Aug 4, 2024 | May 5, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 13,463,000 | 13,076,000 | 13,144,000 | 14,187,000 | 16,207,000 | 15,953,000 | 15,834,000 | 15,220,000 | 14,225,000 | 12,820,000 | 11,209,000 | 9,790,000 | 8,519,000 | 7,464,000 | 6,346,000 | 5,137,000 | 4,014,000 | 3,542,000 | 3,440,000 | 3,705,000 |
| Long-term debt | US$ in thousands | 65,022,000 | 68,417,000 | 70,754,000 | 73,590,000 | 33,181,000 | 35,072,000 | 35,573,000 | 35,565,000 | 33,014,000 | 40,958,000 | 40,958,000 | 39,205,000 | 41,235,000 | 40,178,000 | 40,160,000 | 41,068,000 | 40,235,000 | 43,201,000 | 45,044,000 | 42,407,000 |
| Total stockholders’ equity | US$ in thousands | 67,678,000 | 65,651,000 | 69,961,000 | 70,284,000 | 23,988,000 | 22,079,000 | 22,007,000 | 23,310,000 | 22,709,000 | 20,903,000 | 20,990,000 | 22,994,000 | 24,989,000 | 24,367,000 | 23,966,000 | 23,999,000 | 23,901,000 | 23,585,000 | 23,970,000 | 24,396,000 |
| Return on total capital | 10.15% | 9.75% | 9.34% | 9.86% | 28.35% | 27.91% | 27.50% | 25.85% | 25.53% | 20.72% | 18.09% | 15.74% | 12.86% | 11.56% | 9.90% | 7.89% | 6.26% | 5.30% | 4.98% | 5.55% |
November 3, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $13,463,000K ÷ ($65,022,000K + $67,678,000K)
= 10.15%
Broadcom Inc's return on total capital has shown fluctuations over the past few quarters. The return on total capital was relatively high in the most recent quarter at 10.15%, indicating that the company generated a return of 10.15% on the total capital employed in its operations. This was a slight increase compared to the previous quarter's return of 9.75%.
Looking further back, there was a significant peak in the return on total capital in the quarter ending October 29, 2023, at 28.35%. This suggests that the company achieved a very high return on the total capital invested during that period.
On the other hand, the return on total capital has been gradually declining since then, reaching 5.30% in the quarter ending November 1, 2020. This indicates a lower return on the total capital employed compared to previous periods.
Overall, Broadcom Inc's return on total capital has shown fluctuations, with some periods of high returns followed by declines. It is important for stakeholders to monitor these trends to assess the company's efficiency in generating returns on its capital investments.
Peer comparison
Nov 3, 2024