Broadcom Inc (AVGO)
Financial leverage ratio
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 72,861,000 | 73,249,000 | 75,570,000 | 75,933,000 | 67,493,000 |
| Total stockholders’ equity | US$ in thousands | 23,988,000 | 22,709,000 | 24,989,000 | 23,901,000 | 24,941,000 |
| Financial leverage ratio | 3.04 | 3.23 | 3.02 | 3.18 | 2.71 |
October 29, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $72,861,000K ÷ $23,988,000K
= 3.04
The financial leverage ratio of Broadcom Inc has shown some fluctuation over the past five years. The ratio decreased from 2.70 in 2019 to 3.02 in 2021, then increased to 3.23 in 2022 before decreasing to 3.04 in 2023. This indicates that the company's reliance on debt as a source of financing has varied over the years. The increase in the ratio suggests a higher proportion of debt in the company's capital structure, while a decrease implies a lower reliance on debt. Overall, the trend suggests that the company has been managing its financial leverage to achieve an optimal balance between debt and equity in its capital structure.
Peer comparison
Oct 29, 2023