Broadcom (LTS:0YXG) ROCE % : 8.14% (As of Jan. 2024)

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What is Broadcom ROCE %?

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Broadcom's annualized ROCE % for the quarter that ended in Jan. 2024 was 8.14%.

Broadcom ROCE % Historical Data

The historical data trend for Broadcom's ROCE % 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.

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Broadcom ROCE % Chart

Broadcom Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

ROCE %

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6.77

6.48

12.46

20.92

25.40

Broadcom Quarterly Data
	Apr19	Jul19	Oct19	Jan20	Apr20	Jul20	Oct20	Jan21	Apr21	Jul21	Oct21	Jan22	Apr22	Jul22	Oct22	Jan23	Apr23	Jul23	Oct23	Jan24
ROCE %	Get a 7-Day Free Trial															25.79	25.43	24.80	26.97	8.14

Broadcom ROCE % Calculation

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

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Oct. 2023 )		(A: Oct. 2022 )		(A: Oct. 2023 )
	=	16719	/	( ( (73249 - 7052)	+	(72861 - 7405) )	/ 2 )
	=	16719	/	( (66197	+	65456)	/ 2 )
	=	16719	/	65826.5
	=	25.40 %

Broadcom's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Jan. 2024 )		(Q: Oct. 2023 )		(Q: Jan. 2024 )
	=	9072	/	( ( (72861 - 7405)	+	(177870 - 20369) )	/ 2 )
	=	9072	/	( ( 65456	+	157501 )	/ 2 )
	=	9072	/	111478.5
	=	8.14 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT data.

Broadcom (LTS:0YXG) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

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Broadcom (LTS:0YXG) Business Description

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Address

3421 Hillview Avenue, Palo Alto, CA, USA, 94304

Website

https://www.broadcom.com

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.

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