Broadcom Inc (AVGO)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 67,678,000 | 23,988,000 | 22,709,000 | 24,989,000 | 23,901,000 |
| Debt-to-capital ratio | 0.49 | 0.58 | 0.59 | 0.62 | 0.63 |
November 3, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $65,022,000K ÷ ($65,022,000K + $67,678,000K)
= 0.49
Broadcom Inc's debt-to-capital ratio has shown a decreasing trend over the past five years, indicating a more conservative capital structure. The ratio decreased from 0.63 in November 2020 to 0.49 in November 2024. This suggests that the company has been reducing its reliance on debt financing relative to equity financing. A lower debt-to-capital ratio signifies less financial risk and a stronger financial position for the company. Overall, the trend in Broadcom's debt-to-capital ratio demonstrates a prudent approach to managing its capital structure and financial obligations over the years.
Peer comparison
Nov 3, 2024