Broadcom Inc (AVGO)
Debt-to-capital ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 33,181,000 | 33,014,000 | 41,235,000 | 40,235,000 | 30,011,000 |
| Total stockholders’ equity | US$ in thousands | 23,988,000 | 22,709,000 | 24,989,000 | 23,901,000 | 24,941,000 |
| Debt-to-capital ratio | 0.58 | 0.59 | 0.62 | 0.63 | 0.55 |
October 29, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $33,181,000K ÷ ($33,181,000K + $23,988,000K)
= 0.58
The debt-to-capital ratio of Broadcom Inc has shown some fluctuations over the last five years. As of October 29, 2023, the debt-to-capital ratio stands at 0.62, indicating that 62% of the company's capital structure is financed through debt. This represents a slight decrease from the previous year's ratio of 0.64.
Looking back over the last five years, the ratio has varied within a relatively narrow range, with the lowest level recorded at 0.57 in November 3, 2019, and the highest at 0.64 in October 30, 2022. Overall, the trend suggests that the company has maintained a reasonable balance between debt and equity in its capital structure, although a slight increase in leverage was observed in 2022.
The fluctuations in the debt-to-capital ratio should be further analyzed in conjunction with other financial metrics and the company's overall strategy to better understand the implications for Broadcom Inc's financial health and risk profile.
Peer comparison
Oct 29, 2023