Broadcom Inc (AVGO)

Interest coverage

		Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	16,207,000	14,225,000	8,519,000	4,014,000	3,444,000
Interest expense	US$ in thousands	1,622,000	1,737,000	1,885,000	1,777,000	1,444,000
Interest coverage		9.99	8.19	4.52	2.26	2.39

October 29, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $16,207,000K ÷ $1,622,000K
= 9.99

Broadcom Inc's interest coverage ratio has shown a consistent improvement over the past five years. The ratio has increased from 3.16 in November 2019 to 15.14 in October 2023. This indicates that the company's ability to meet its interest obligations from its operating income has significantly strengthened. The substantial increase in interest coverage suggests that Broadcom Inc has been effectively managing its debt and generating higher earnings relative to its interest expenses. This trend reflects positively on the company's financial health and ability to service its debt obligations.