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Broadcom (Broadcom) Piotroski F-Score : 0 (As of Apr. 26, 2024)


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What is Broadcom Piotroski F-Score?

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Broadcom has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Broadcom's Piotroski F-Score or its related term are showing as below:


Broadcom Piotroski F-Score Historical Data

The historical data trend for Broadcom's Piotroski F-Score 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 Piotroski F-Score Chart

Broadcom Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.00 4.00 4.00 6.00 6.00

Broadcom Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
Piotroski F-Score 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 4.00 6.00 6.00 6.00 7.00

How is the Piotroski F-Score calculated?

* 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.

This Year (Sep15) TTM:Last Year (Sep14) TTM:
Net Income was 390 + 209 + 386 + 429 = $1,414 Mil.
Cash Flow from Operations was 633 + -25 + 802 + 483 = $1,893 Mil.
Revenue was 2143 + 2058 + 2096 + 2187 = $8,484 Mil.
Gross Profit was 1131 + 1086 + 1157 + 1172 = $4,546 Mil.
Average Total Assets from the begining of this year (Sep14)
to the end of this year (Sep15) was
(12215 + 12471 + 12062 + 12990 + 13235) / 5 = $12594.6 Mil.
Total Assets at the begining of this year (Sep14) was $12,215 Mil.
Long-Term Debt & Capital Lease Obligation was $1,594 Mil.
Total Current Assets was $5,113 Mil.
Total Current Liabilities was $1,421 Mil.
Net Income was 168 + 165 + -1 + 98 = $430 Mil.

Revenue was 2064 + 1984 + 2041 + 2260 = $8,349 Mil.
Gross Profit was 1038 + 980 + 1036 + 1183 = $4,237 Mil.
Average Total Assets from the begining of last year (Sep13)
to the end of last year (Sep14) was
(11345 + 11495 + 11907 + 11971 + 12215) / 5 = $11786.6 Mil.
Total Assets at the begining of last year (Sep13) was $11,345 Mil.
Long-Term Debt & Capital Lease Obligation was $1,593 Mil.
Total Current Assets was $5,024 Mil.
Total Current Liabilities was $1,711 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Broadcom's current Net Income (TTM) was 1,414. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Broadcom's current Cash Flow from Operations (TTM) was 1,893. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Sep14)
=1414/12215
=0.11575931

ROA (Last Year)=Net Income/Total Assets (Sep13)
=430/11345
=0.03790216

Broadcom's return on assets of this year was 0.11575931. Broadcom's return on assets of last year was 0.03790216. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Broadcom's current Net Income (TTM) was 1,414. Broadcom's current Cash Flow from Operations (TTM) was 1,893. ==> 1,893 > 1,414 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Sep15)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep14 to Sep15
=1594/12594.6
=0.12656218

Gearing (Last Year: Sep14)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Sep13 to Sep14
=1593/11786.6
=0.13515348

Broadcom's gearing of this year was 0.12656218. Broadcom's gearing of last year was 0.13515348. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Sep15)=Total Current Assets/Total Current Liabilities
=5113/1421
=3.5981703

Current Ratio (Last Year: Sep14)=Total Current Assets/Total Current Liabilities
=5024/1711
=2.93629456

Broadcom's current ratio of this year was 3.5981703. Broadcom's current ratio of last year was 2.93629456. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Broadcom's number of shares in issue this year was 620. Broadcom's number of shares in issue last year was 607. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=4546/8484
=0.53583215

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=4237/8349
=0.50748593

Broadcom's gross margin of this year was 0.53583215. Broadcom's gross margin of last year was 0.50748593. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Sep14)
=8484/12215
=0.69455587

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Sep13)
=8349/11345
=0.73591891

Broadcom's asset turnover of this year was 0.69455587. Broadcom's asset turnover of last year was 0.73591891. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+0+1+0
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Broadcom has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Broadcom  (NAS:BRCM) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Broadcom Piotroski F-Score Related Terms

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Broadcom (Broadcom) Business Description

Traded in Other Exchanges
N/A
Address
Broadcom Corp was incorporated in California in August 16, 1991. The Company is provider of semiconductors for wired and wireless communications. It provides a portfolio of SoCs that seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environments. Its business segments include Broadband and Connectivity; and Infrastructure and Networking. The solutions in Broadband and Connectivity segment include set-top box solutions, broadband modem solutions, connectivity solutions, and a range of other technologies. Customer products incorporating its solutions in Broadband and Connectivity segment include set-top boxes, or STBs, central office broadband access equipment, residential gateways, stand-alone broadband access modems, and a range of consumer devices, including smartphones and tablets, wearable devices, PCs, laptops, access points, and others. It offers complete platform solutions for cable, satellite, Internet Protocol, over-the-top and terrestrial STBs. Its solutions in Infrastructure and Networking segment include Ethernet switches and PHYs, which includes switches and fabrics; copper and optical transceivers; backplane and optical front-end physical layer devices; processors (including multicore processors); and other Infrastructure and Networking technologies (including knowledge-based processors, VoIP solutions, microwave backhaul solutions and radio head digital front ends). It also offers a family of Ethernet controllers. Customer products incorporating its solutions in Infrastructure and Networking segment include service provider metro equipment; edge and core routers, wireless infrastructure and wireless access points; switches and routers; servers and workstations; network interface cards; LAN on motherboard applications; optical networks and dense wave division multiplexing applications; security appliances; storage controllers; microwave links for wireless backhaul; cellular remote radio heads; automobile Ethernet networks; point-of-sale equipment; and other embedded SoC subsystems. Its customers shipping wired and/or wireless communications equipment and devices incorporating its products include Alcatel-Lucent, Apple, Arris, Cisco, Huawei Technologies, Humax, Pace, Samsung, Technicolor, ZTE. Its trademark includes Broadcom and BroadR-Reach. The Company's competitors include Intel Corporation, Marvell Technology Group Ltd., Mediatek Inc., Qualcomm Incorporation, and STMicroelectronics NV with respect to Broadband and Connectivity segment; and Cavium, Inc., Freescale Semiconductor,Ltd., Intel Corporation, Marvell Technology Group Ltd., and Mellanox with respect to Infrastructure and Networking segment. The Company's production is subject to environmental rules and regulations.
Executives
Nancy H Handel director 567 SAN NICOLAS DRIVE, SUITE 360, NEWPORT BEACH CA 92660
Rajiv Ramaswami officer: Former EVP&GM, ING 5300 CALIFORNIA AVENUE, IRVINE CA 92617
Robert J Finocchio director C/O ALTERA CORP 101 INNOVATION DRIVE SAN JOSE CA 95134
John E Major director C/O LENNOX INTERNATIONAL INC., 2140 LAKE PARK BOULEVARD, RICHARDSON TX 75080-2254
Michael E. Hurlston officer: Former EVP, Worldwide Sales 5300 CALIFORNIA AVENUE, IRVINE CA 92617
Neil Y. Kim officer: Former EVP, Ops. & Central Eng MARVELL SEMICONDUCTOR, INC., 5488 MARVELL LANE, SANTA CLARA CA 95054
William T Morrow director 77 BEALE STREET, 32ND FLOOR, SAN FRANCISCO CA 94105
Robert E Switz director 13625 TECHNOLOGY DRIVE, EDEN PRAIRIE MN 55344
Maria Klawe director C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Eric Brandt officer: Former EVP & CFO C/O DENTSPLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Nancy R Phillips officer: Former EVP, Human Resources 1515 BROADWAY, NEW YORK NY 10036
Eddy W Hartenstein director
Henry Samueli director, officer: Chairman of the Board and CTO 5300 CALIFORNIA AVENUE, IRVINE CA 92617-3038
Scott A Mcgregor director, officer: Former President & CEO 5300 CALIFORNIA AVENUE, IRVINE CA 92617
Robert A. Rango officer: EVP & GM, Mobile&Wireless Grp 5300 CALIFORNIA AVENUE, IRVINE CA 92617

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