Broadcom Inc (AVGO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.41 | 0.46 | 0.49 | 0.50 | 0.49 | 0.45 | 0.57 | 0.57 | 0.54 | 0.55 | 0.53 | 0.53 | 0.53 | 0.53 | 0.54 | 0.55 | 0.52 | 0.44 | 0.49 | 0.48 |
| Debt-to-capital ratio | 0.51 | 0.58 | 0.61 | 0.62 | 0.60 | 0.59 | 0.66 | 0.66 | 0.63 | 0.62 | 0.62 | 0.63 | 0.63 | 0.63 | 0.65 | 0.65 | 0.63 | 0.55 | 0.61 | 0.61 |
| Debt-to-equity ratio | 1.05 | 1.38 | 1.59 | 1.62 | 1.53 | 1.45 | 1.96 | 1.95 | 1.71 | 1.65 | 1.65 | 1.68 | 1.71 | 1.68 | 1.83 | 1.88 | 1.74 | 1.20 | 1.58 | 1.53 |
| 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 |
Broadcom Inc's solvency ratios have shown fluctuations over the past few quarters. The debt-to-assets ratio has ranged between 0.41 and 0.57, indicating that the company's proportion of debt relative to its total assets has varied. The trend has shown a slight decrease in recent quarters.
The debt-to-capital ratio has fluctuated between 0.51 and 0.66, showing the percentage of the company's capital that is financed by debt. This ratio has also displayed variability, with a slight downward trend in the most recent periods.
The debt-to-equity ratio has ranged from 1.05 to 1.96, reflecting the level of financial leverage and risk borne by equity investors. This ratio has shown significant variation, with a notable increase in mid-2022 followed by some moderation in subsequent periods.
The financial leverage ratio, which measures the extent to which the company is using debt to finance its operations, has fluctuated between 2.53 and 3.42. This ratio has shown volatility, indicating changes in the company's leverage position over time.
Overall, the analysis of Broadcom Inc's solvency ratios suggests that the company has experienced some changes in its leverage and debt levels in recent quarters, highlighting the importance of monitoring these metrics for a comprehensive understanding of its financial health.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 6.62 | 9.99 | 9.83 | 9.76 | 8.77 | 8.19 | 7.26 | 6.32 | 5.69 | 4.52 | 3.99 | 3.31 | 2.65 | 2.26 | 2.06 | 2.13 | 2.46 | 2.50 | 3.35 | 4.51 |
Interest coverage ratio is a financial metric used to evaluate a company's ability to meet its interest obligations on its outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expense.
Based on the data provided for Broadcom Inc, the interest coverage ratio has fluctuated over the past several quarters. The ratio has generally been above 2, which is considered the minimum acceptable level for many analysts.
In the most recent period, as of February 4, 2024, the interest coverage ratio was 6.62, indicating that Broadcom Inc generated enough operating income to cover its interest expenses more than six times over. This high ratio suggests that the company has a comfortable financial position with regards to its ability to meet interest payments.
Looking at the trend over the past few quarters, the interest coverage ratio has shown a general upward trend, indicating an improvement in the company's ability to cover its interest expenses. The ratios have been consistently above 2.5 since the May 5, 2019 period, showing a relatively healthy financial position in terms of interest coverage.
Overall, the interest coverage ratio analysis for Broadcom Inc suggests that the company has been effectively managing its interest obligations in recent quarters, with a trend towards improved coverage ratios. This indicates a healthy financial position and suggests that the company is effectively managing its debt.