Broadcom Inc (AVGO)
Financial leverage ratio
| 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 | Nov 3, 2019 | Aug 4, 2019 | May 5, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 67,493,000 | 69,767,000 | 70,916,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 24,941,000 | 21,503,000 | 22,172,000 |
| Financial leverage ratio | 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 | 2.71 | 3.24 | 3.20 |
February 4, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $177,870,000K ÷ $70,284,000K
= 2.53
Broadcom Inc's financial leverage ratio has fluctuated over the past few quarters, ranging from 2.53 to 3.42. The ratio indicates that the company's level of debt relative to its equity has been relatively high, with leverage increasing from the start of the period to reach a peak in the middle. This suggests that Broadcom has been relying more on debt financing compared to equity financing during this period.
The trend in the financial leverage ratio may indicate varying levels of financial risk for Broadcom. Higher leverage ratios typically imply higher financial risk, as increased debt levels can lead to higher interest payments and potential liquidity challenges. On the other hand, leverage can also amplify returns for shareholders when the company performs well.
It is advisable for investors and stakeholders to monitor Broadcom's financial leverage ratio closely going forward, as changes in this ratio can impact the company's overall financial health and stability. Additionally, analyzing the trend in conjunction with other financial metrics can provide a more comprehensive understanding of Broadcom's financial position.
Peer comparison
Feb 4, 2024