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Broadcom ROA %

: 17.19% (As of Jul. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Broadcom's annualized Net Income for the quarter that ended in Jul. 2022 was $12,296 Mil. Broadcom's average Total Assets over the quarter that ended in Jul. 2022 was $71,523 Mil. Therefore, Broadcom's annualized ROA % for the quarter that ended in Jul. 2022 was 17.19%.

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

AVGO' s ROA % Range Over the Past 10 Years
Min: -5.75   Med: 6.76   Max: 23.45
Current: 13.77

During the past 13 years, Broadcom's highest ROA % was 23.45%. The lowest was -5.75%. And the median was 6.76%.

AVGO's ROA % is ranked better than
77.72% of 920 companies
in the Semiconductors industry
Industry Median: 6.40 vs AVGO: 13.77

Broadcom ROA % Historical Data

The historical data trend for Broadcom's ROA % 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 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.42 23.45 4.63 4.13 8.89

Broadcom Quarterly Data
Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
ROA % 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 9.91 10.51 13.29 14.30 17.19

Competitive Comparison

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

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

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



Broadcom ROA % Calculation

Broadcom's annualized ROA % for the fiscal year that ended in Oct. 2021 is calculated as:

ROA %=Net Income (A: Oct. 2021 )/( (Total Assets (A: Oct. 2020 )+Total Assets (A: Oct. 2021 ))/ count )
=6736/( (75933+75570)/ 2 )
=6736/75751.5
=8.89 %

Broadcom's annualized ROA % for the quarter that ended in Jul. 2022 is calculated as:

ROA %=Net Income (Q: Jul. 2022 )/( (Total Assets (Q: Apr. 2022 )+Total Assets (Q: Jul. 2022 ))/ count )
=12296/( (71719+71326)/ 2 )
=12296/71522.5
=17.19 %

* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jul. 2022) net income data. ROA % is displayed in the 30-year financial page.


Broadcom  (NAS:AVGO) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: Jul. 2022 )
=Net Income/Total Assets
=12296/71522.5
=(Net Income / Revenue)*(Revenue / Total Assets)
=(12296 / 33856)*(33856 / 71522.5)
=Net Margin %*Asset Turnover
=36.32 %*0.4734
=17.19 %

Note: The Net Income data used here is four times the quarterly (Jul. 2022) net income data. The Revenue data used here is four times the quarterly (Jul. 2022) revenue data.

* 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

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Broadcom ROA % Related Terms

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


Broadcom Business Description

Broadcom logo
Address
1320 Ridder Park Drive, San Jose, CA, USA, 95131-2313
Broadcom--the combined entity of Broadcom and Avago--boasts a highly diverse product portfolio across an array of end markets. Avago focused primarily on radio frequency filters and amplifiers used in high-end smartphones, such as the Apple iPhone and Samsung Galaxy devices, in addition to an assortment of solutions for wired infrastructure, enterprise storage, and industrial end markets. Legacy Broadcom targeted networking semiconductors, such as switch and physical layer chips, broadband products (such as television set-top box processors), and connectivity chips that handle standards such as Wi-Fi and Bluetooth. The company has acquired Brocade, CA Technologies, and Symantec's enterprise security business to bolster its offerings in software.
Executives
Fernandez Raul J director 11600 SUNRISE VALLEY DR RESTON VA 20191
Lien Justine director 1320 RIDDER PARK DRIVE SAN JOSE CA 95131
Bryant Diane M director 2200 MISSION COLLEGE BLVD SANTA CLARA CA 95054
You Harry L. director EMC CORPORATION 176 SOUTH STREET HOPKINTON MA 01748
Krause Thomas H. officer: Chief Financial Officer 1320 RIDDER PARK SAN JOSE CA 95131
Ingram Bryan officer: SVP & GM, Wireless Semicon Div C/O AVAGO TECHNOLOGIES LIMITED 350 WEST TRIMBLE ROAD, BLDG. 90 SAN JOSE CA 95131
Spears Kirsten M. officer: Principal Accounting Officer 1320 RIDDER PARK SAN JOSE CA 95131
Kawwas Charlie B officer: SVP & Chief Sales Officer C/O AVAGO TECHNOLOGIES U.S. INC. 350 WEST TRIMBLE ROAD SAN JOSE CA 95131
Brazeal Mark David officer: Chief Legal Officer 1320 RIDDER PARK DRIVE SAN JOSE CA 95131
Tan Hock E director, officer: President and CEO BROADCOM INC. 1320 RIDDER PARK DRIVE SAN JOSE CA 95131
Silver Lake Partners V De (aiv), L.p. director C/O SILVER LAKE 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Silver Lake Technology Associates V, L.p. director C/O SILVER LAKE 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Slta V (gp), L.l.c. director C/O SILVER LAKE 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Silver Lake Technology Investors V, L.p. director C/O SILVER LAKE 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025
Silver Lake Group, L.l.c. director 2775 SAND HILL ROAD, SUITE 100 MENLO PARK CA 94025

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