GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Broadcom Inc (NAS:AVGO) » Definitions » Operating Margin %

AVGO (Broadcom) Operating Margin % : 31.30% (As of Jul. 2024)


View and export this data going back to 2009. Start your Free Trial

What is Broadcom Operating Margin %?

Operating Margin % is calculated as Operating Income divided by its Revenue. Broadcom's Operating Income for the three months ended in Jul. 2024 was $4,091 Mil. Broadcom's Revenue for the three months ended in Jul. 2024 was $13,072 Mil. Therefore, Broadcom's Operating Margin % for the quarter that ended in Jul. 2024 was 31.30%.

Good Sign:

Broadcom Inc operating margin is expanding. Margin expansion is usually a good sign.

The historical rank and industry rank for Broadcom's Operating Margin % or its related term are showing as below:

AVGO' s Operating Margin % Range Over the Past 10 Years
Min: 4.43   Med: 22.13   Max: 45.93
Current: 30.55


AVGO's Operating Margin % is ranked better than
95.77% of 994 companies
in the Semiconductors industry
Industry Median: 5.015 vs AVGO: 30.55

Broadcom's 5-Year Average Operating Margin % Growth Rate was 18.70% per year.

Broadcom's Operating Income for the three months ended in Jul. 2024 was $4,091 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Jul. 2024 was $14,304 Mil.


Broadcom Operating Margin % Historical Data

The historical data trend for Broadcom's Operating Margin % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Broadcom Operating Margin % Chart

Broadcom Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Operating Margin %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 18.50 17.63 31.57 43.01 45.93

Broadcom Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
Operating Margin % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 45.83 45.76 22.60 26.08 31.30

Competitive Comparison of Broadcom's Operating Margin %

For the Semiconductors subindustry, Broadcom's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Broadcom's Operating Margin % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Broadcom's Operating Margin % distribution charts can be found below:

* The bar in red indicates where Broadcom's Operating Margin % falls into.



Broadcom Operating Margin % Calculation

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Broadcom's Operating Margin % for the fiscal year that ended in Oct. 2023 is calculated as

Operating Margin %=Operating Income (A: Oct. 2023 ) / Revenue (A: Oct. 2023 )
=16451 / 35819
=45.93 %

Broadcom's Operating Margin % for the quarter that ended in Jul. 2024 is calculated as

Operating Margin %=Operating Income (Q: Jul. 2024 ) / Revenue (Q: Jul. 2024 )
=4091 / 13072
=31.30 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Broadcom  (NAS:AVGO) Operating Margin % Explanation

Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.


Be Aware

Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia’s Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.


Broadcom Operating Margin % Related Terms

Thank you for viewing the detailed overview of Broadcom's Operating Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.


Broadcom Business Description

Address
3421 Hillview Avenue, Palo Alto, CA, USA, 94304
Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments.Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.
Executives
Charlie B Kawwas officer: SVP & Chief Sales Officer C/O AVAGO TECHNOLOGIES U.S. INC., 350 WEST TRIMBLE ROAD, SAN JOSE CA 95131
Hock E Tan director, officer: President and CEO BROADCOM INC., 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Justine Lien director 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Mark David Brazeal officer: Chief Legal Officer 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Kirsten M. Spears officer: Principal Accounting Officer 1320 RIDDER PARK, SAN JOSE CA 95131
Kenneth Hao director C/O SILVER LAKE PARTNERS, 2775 SAND HILL ROAD, SUITE 100, MENLO PARK CA 94025
Eddy W Hartenstein director
Harry L. You director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Check Kian Low director 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Raul J Fernandez director 11600 SUNRISE VALLEY DR, RESTON VA 20191
Gayla J Delly director 3000 TECHNOLOGY DR, ANGLETON TX 77515
Diane M Bryant director 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054
Thomas H. Krause officer: Chief Financial Officer 1320 RIDDER PARK, SAN JOSE CA 95131
Henry Samueli director, officer: Chief Technical Officer 5300 CALIFORNIA AVENUE, IRVINE CA 92617-3038
Bryan Ingram officer: SVP & GM, Wireless Semicon Div C/O AVAGO TECHNOLOGIES LIMITED, 350 WEST TRIMBLE ROAD, BLDG. 90, SAN JOSE CA 95131