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Broadcom (NAS:AVGO) Inventory Turnover

: 2.40 (As of Jan. 2024)
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Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Broadcom's Cost of Goods Sold for the three months ended in Jan. 2024 was $4,586 Mil. Broadcom's Average Total Inventories for the quarter that ended in Jan. 2024 was $1,909 Mil. Broadcom's Inventory Turnover for the quarter that ended in Jan. 2024 was 2.40.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Broadcom's Days Inventory for the three months ended in Jan. 2024 was 37.98.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Broadcom's Inventory-to-Revenue for the quarter that ended in Jan. 2024 was 0.16.


Broadcom Inventory Turnover Historical Data

The historical data trend for Broadcom's Inventory Turnover 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 Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Inventory Turnover
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 10.12 11.05 9.22 6.90 5.82

Broadcom Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Inventory Turnover 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 Premium Member Only Premium Member Only Premium Member Only 1.52 1.38 1.45 1.54 2.40

Broadcom Inventory Turnover Calculation

Broadcom's Inventory Turnover for the fiscal year that ended in Oct. 2023 is calculated as

Inventory Turnover (A: Oct. 2023 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (A: Oct. 2023 ) / ((Total Inventories (A: Oct. 2022 ) + Total Inventories (A: Oct. 2023 )) / count )
=11129 / ((1925 + 1898) / 2 )
=11129 / 1911.5
=5.82

Broadcom's Inventory Turnover for the quarter that ended in Jan. 2024 is calculated as

Inventory Turnover (Q: Jan. 2024 )
=Cost of Goods Sold / Average Total Inventories
=Cost of Goods Sold (Q: Jan. 2024 ) / ((Total Inventories (Q: Oct. 2023 ) + Total Inventories (Q: Jan. 2024 )) / count )
=4586 / ((1898 + 1920) / 2 )
=4586 / 1909
=2.40

* 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) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Broadcom's Days Inventory for the three months ended in Jan. 2024 is calculated as:

Days Inventory =Average Total Inventories (Q: Jan. 2024 )/Cost of Goods Sold (Q: Jan. 2024 )*Days in Period
=1909/4586*365 / 4
=37.98

2. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Broadcom's Inventory to Revenue for the quarter that ended in Jan. 2024 is calculated as

Inventory-to-Revenue=Average Total Inventories (Q: Jan. 2024 ) / Revenue (Q: Jan. 2024 )
=1909 / 11961
=0.16

* 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

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.


Broadcom Inventory Turnover Related Terms

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Broadcom (NAS:AVGO) 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
Kirsten M. Spears officer: Principal Accounting Officer 1320 RIDDER PARK, SAN JOSE CA 95131
Hock E Tan director, officer: President and CEO BROADCOM INC., 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Eddy W Hartenstein director
Mark David Brazeal officer: Chief Legal Officer 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Charlie B Kawwas officer: SVP & Chief Sales Officer C/O AVAGO TECHNOLOGIES U.S. INC., 350 WEST TRIMBLE ROAD, SAN JOSE CA 95131
Justine Lien director 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
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
Donald Macleod director

Broadcom (NAS:AVGO) Headlines

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