Broadcom Inc (AVGO)

Debt-to-equity 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-equity ratio		0.96	1.38	1.45	1.65	1.68

November 3, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $65,022,000K ÷ $67,678,000K
= 0.96

Broadcom Inc's debt-to-equity ratio has been fluctuating over the past five years. As of November 3, 2024, the ratio stands at 0.96, which indicates that the company has a lower level of debt compared to its equity. This suggests that Broadcom is relying less on external borrowing to finance its operations and growth.

However, it is important to note the trend in the debt-to-equity ratio over the years. The ratio was relatively higher in the previous years, with figures of 1.38 in 2023, 1.45 in 2022, 1.65 in 2021, and 1.68 in 2020. These higher ratios suggest that Broadcom had a higher level of debt relative to its equity in those years, indicating a greater reliance on debt financing.

The decrease in the debt-to-equity ratio from 2020 to 2024 could signify that Broadcom has been actively managing its debt levels and working towards a more balanced capital structure. A lower debt-to-equity ratio generally indicates lower financial risk and greater financial stability for the company.

Overall, while the current debt-to-equity ratio of 0.96 shows a favorable position for Broadcom in terms of its debt management, it is essential to continue monitoring the ratio in conjunction with other financial metrics to assess the company's financial health and sustainability.