Broadcom Inc (AVGO)

Debt-to-capital 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 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
Debt-to-capital ratio		0.49	0.51	0.50	0.51	0.58	0.61	0.62	0.60	0.59	0.66	0.66	0.63	0.62	0.62	0.63	0.63	0.63	0.65	0.65	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

The debt-to-capital ratio of Broadcom Inc has shown some fluctuations over the past few quarters, ranging between 0.49 and 0.66. A higher debt-to-capital ratio indicates that the company relies more on debt to finance its operations and investments, compared to equity.

The trend in the debt-to-capital ratio over the period suggests that Broadcom has been maintaining a relatively stable level of debt relative to its total capital structure. The ratio has hovered around the 0.60 range, indicating a balanced mix of debt and equity financing.

It is important to note that a higher debt-to-capital ratio may indicate higher financial risk and leverage for the company, while a lower ratio may signify a more conservative financial structure. Therefore, ongoing monitoring of this ratio is crucial for assessing Broadcom's financial health and risk management strategies.