Broadcom Inc (AVGO)
Debt-to-assets ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 assets | US$ in thousands | 165,645,000 | 167,966,000 | 175,211,000 | 177,870,000 | 72,861,000 | 71,595,000 | 71,667,000 | 72,976,000 | 73,249,000 | 71,326,000 | 71,719,000 | 73,224,000 | 75,570,000 | 75,880,000 | 75,524,000 | 76,972,000 | 75,933,000 | 79,298,000 | 81,548,000 | 81,006,000 |
| Debt-to-assets ratio | 0.39 | 0.41 | 0.40 | 0.41 | 0.46 | 0.49 | 0.50 | 0.49 | 0.45 | 0.57 | 0.57 | 0.54 | 0.55 | 0.53 | 0.53 | 0.53 | 0.53 | 0.54 | 0.55 | 0.52 |
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 some fluctuations over the past few years, ranging from 0.39 to 0.57. The ratio indicates the proportion of the company's assets that are financed through debt, with a higher ratio suggesting a higher level of financial leverage.
From the data provided, it can be observed that the debt-to-assets ratio has generally been above 0.50 since July 2023, indicating that Broadcom has been relying heavily on debt to finance its operations and investments. This level of leverage may pose risks in terms of financial stability and solvency, as a higher debt-to-assets ratio means the company is more vulnerable to economic downturns or changes in interest rates.
While the ratio decreased slightly in the most recent period (November 2024), it is still relatively high compared to historical levels. It would be important for Broadcom to continue monitoring and managing its debt levels to ensure they are sustainable and aligned with the company's financial goals and obligations.
Peer comparison
Nov 3, 2024