Broadcom Inc (AVGO)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.39 | 0.41 | 0.40 | 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 |
| Debt-to-capital ratio | 0.49 | 0.51 | 0.50 | 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 |
| Debt-to-equity ratio | 0.96 | 1.04 | 1.01 | 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 |
| 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 |
Broadcom Inc's solvency ratios, including the debt-to-assets ratio, debt-to-capital ratio, debt-to-equity ratio, and financial leverage ratio, have shown some fluctuations over the past few quarters.
The debt-to-assets ratio has ranged from 0.39 to 0.57, indicating that the company's debt represents between 39% and 57% of its total assets. There has been some variability in this ratio, but it generally remains within a moderate range.
Similarly, the debt-to-capital ratio has fluctuated between 0.49 and 0.66, reflecting the proportion of debt in relation to the total capital structure. This ratio has also shown some volatility but has generally stayed within a moderate to higher range.
The debt-to-equity ratio has ranged from 0.96 to 1.96, with some quarters showing higher leverage compared to others. This ratio indicates the extent to which the company is financed by debt relative to shareholders' equity, and the fluctuations suggest varying levels of financial risk.
The financial leverage ratio fluctuated between 2.45 and 3.42, demonstrating the company's overall financial risk and the extent to which it relies on debt financing. The higher the financial leverage ratio, the higher the financial risk.
In conclusion, while Broadcom Inc's solvency ratios have demonstrated some variability, overall, the company has maintained a moderate level of debt relative to its assets, capital, and equity. However, the fluctuations in these ratios over the quarters suggest changing levels of financial risk and leverage for the company.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 3.41 | 3.80 | 4.72 | 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 |
Broadcom Inc's interest coverage ratio has shown a fluctuating trend over the past few years. The ratio has ranged from a low of 2.06 to a high of 9.99 during this time period. A higher interest coverage ratio indicates that the company is more capable of servicing its interest obligations from its earnings.
The interest coverage ratio has generally been above 3, which suggests that Broadcom Inc has been able to cover its interest expenses comfortably. The highest interest coverage ratio of 9.99 was reported on Oct 29, 2023, indicating a strong ability to meet its interest payments from operating profits. However, the ratio has experienced some fluctuations, possibly due to changes in Broadcom Inc's earnings or interest expense.
It is important for investors and creditors to monitor the interest coverage ratio to assess Broadcom Inc's ability to meet its debt obligations. A declining trend in the interest coverage ratio may indicate declining profitability or increasing interest expenses, which could raise concerns about the company's financial health.