Broadcom Inc (AVGO)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 165,645,000 | 167,966,000 | 175,211,000 | 177,870,000 | 72,861,000 | 71,595,000 | 71,667,000 | 72,976,000 | 73,249,000 | 71,326,000 | 71,719,000 | 73,224,000 | 75,570,000 | 75,880,000 | 75,524,000 | 76,972,000 | 75,933,000 | 79,298,000 | 81,548,000 | 81,006,000 |
| 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 |
| Financial leverage ratio | 2.45 | 2.56 | 2.50 | 2.53 | 3.04 | 3.24 | 3.26 | 3.13 | 3.23 | 3.41 | 3.42 | 3.18 | 3.02 | 3.11 | 3.15 | 3.21 | 3.18 | 3.36 | 3.40 | 3.32 |
November 3, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $165,645,000K ÷ $67,678,000K
= 2.45
Broadcom Inc's financial leverage ratio has exhibited fluctuations over the past few quarters. The ratio measures how much the company relies on debt to finance its operations and growth.
Looking at the trend, the financial leverage ratio has generally been on an upward trajectory from 2.45 in November 2020 to 3.40 in August 2020. This suggests that Broadcom has been gradually increasing its reliance on debt to support its activities.
However, it is important to note that the ratio peaked at 3.42 in July 2022 and has since slightly decreased to 2.45 in November 2024. This decrease could indicate that Broadcom may have adjusted its capital structure by reducing debt or increasing equity in recent quarters.
Overall, the varying levels of the financial leverage ratio reflect changes in Broadcom's capital structure and the company's strategic decisions regarding debt management. Investors and stakeholders should continue to monitor the ratio to assess Broadcom's financial risk and stability.
Peer comparison
Nov 3, 2024