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AVGO (Broadcom) ROE % : -11.06% (As of Jul. 2024)


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What is Broadcom ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Broadcom's annualized net income for the quarter that ended in Jul. 2024 was $-7,500 Mil. Broadcom's average Total Stockholders Equity over the quarter that ended in Jul. 2024 was $67,806 Mil. Therefore, Broadcom's annualized ROE % for the quarter that ended in Jul. 2024 was -11.06%.

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

AVGO' s ROE % Range Over the Past 10 Years
Min: -14.73   Med: 19.84   Max: 60.31
Current: 10.11

During the past 13 years, Broadcom's highest ROE % was 60.31%. The lowest was -14.73%. And the median was 19.84%.

AVGO's ROE % is ranked better than
69.59% of 980 companies
in the Semiconductors industry
Industry Median: 4.625 vs AVGO: 10.11

Broadcom ROE % Historical Data

The historical data trend for Broadcom's ROE % 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 ROE % Chart

Broadcom Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 10.55 12.11 27.56 48.20 60.31

Broadcom Quarterly Data
Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24 Jul24
ROE % 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 59.94 61.20 11.24 12.10 -11.06

Competitive Comparison of Broadcom's ROE %

For the Semiconductors subindustry, Broadcom's ROE %, along with its competitors' market caps and ROE % 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 ROE % Distribution in the Semiconductors Industry

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

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



Broadcom ROE % Calculation

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

ROE %=Net Income (A: Oct. 2023 )/( (Total Stockholders Equity (A: Oct. 2022 )+Total Stockholders Equity (A: Oct. 2023 ))/ count )
=14082/( (22709+23988)/ 2 )
=14082/23348.5
=60.31 %

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

ROE %=Net Income (Q: Jul. 2024 )/( (Total Stockholders Equity (Q: Apr. 2024 )+Total Stockholders Equity (Q: Jul. 2024 ))/ count )
=-7500/( (69961+65651)/ 2 )
=-7500/67806
=-11.06 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Jul. 2024) net income data. ROE % is displayed in the 30-year financial page.


Broadcom  (NAS:AVGO) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jul. 2024 )
=Net Income/Total Stockholders Equity
=-7500/67806
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-7500 / 52288)*(52288 / 171588.5)*(171588.5 / 67806)
=Net Margin %*Asset Turnover*Equity Multiplier
=-14.34 %*0.3047*2.5306
=ROA %*Equity Multiplier
=-4.37 %*2.5306
=-11.06 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jul. 2024 )
=Net Income/Total Stockholders Equity
=-7500/67806
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-7500 / 11224) * (11224 / 16364) * (16364 / 52288) * (52288 / 171588.5) * (171588.5 / 67806)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= -0.6682 * 0.6859 * 31.3 % * 0.3047 * 2.5306
=-11.06 %

Note: The net income data used here is four times the quarterly (Jul. 2024) net income data. The Revenue data used here is four times the quarterly (Jul. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Broadcom ROE % Related Terms

Thank you for viewing the detailed overview of Broadcom's ROE % 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