Broadcom Inc (AVGO)
Debt-to-assets ratio
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 65,022,000 | 33,181,000 | 33,014,000 | 41,235,000 | 40,235,000 |
| Total assets | US$ in thousands | 165,645,000 | 72,861,000 | 73,249,000 | 75,570,000 | 75,933,000 |
| Debt-to-assets ratio | 0.39 | 0.46 | 0.45 | 0.55 | 0.53 |
November 3, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $65,022,000K ÷ $165,645,000K
= 0.39
Broadcom Inc's debt-to-assets ratio has shown a decreasing trend over the past five years, indicating improved financial stability and a lower reliance on debt to finance its operations. The ratio decreased from 0.53 in November 2020 to 0.39 in November 2024. This suggests that the company has been able to manage its debt levels more effectively relative to its total assets. A decreasing debt-to-assets ratio is generally viewed positively by investors and creditors, as it signifies lower financial risk and a stronger balance sheet. However, it is essential to consider other factors such as the nature of the industry, the company's growth prospects, and overall economic conditions when evaluating the significance of this trend.
Peer comparison
Nov 3, 2024