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Broadcom ROC (Joel Greenblatt) %

: 357.88% (As of Jul. 2021)
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Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits). He defines ROC (Joel Greenblatt) % as EBIT divided by the total of Property, Plant and Equipment and net working capital. Broadcom's annualized ROC (Joel Greenblatt) % for the quarter that ended in Jul. 2021 was 357.88%.

The historical rank and industry rank for Broadcom's ROC (Joel Greenblatt) % or its related term are showing as below:

NAS:AVGO' s ROC (Joel Greenblatt) % Range Over the Past 10 Years
Min: -16.74   Med: 78.51   Max: 307.65
Current: 307.65

-16.74
307.65

During the past 13 years, Broadcom's highest ROC (Joel Greenblatt) % was 307.65%. The lowest was -16.74%. And the median was 78.51%.

NAS:AVGO's ROC (Joel Greenblatt) % is ranked higher than
80% of the 217 Companies
in the Semiconductors industry.

( Industry Median: -1.65 vs. NAS:AVGO: 307.65 )

Broadcom's 5-Year average Growth Rate of ROC (Joel Greenblatt) % was 0.00% per year.


Broadcom ROC (Joel Greenblatt) % Historical Data

The historical data trend for Broadcom's ROC (Joel Greenblatt) % 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 Oct11 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20
ROC (Joel Greenblatt) %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -16.74 53.22 105.97 87.10 144.92

Broadcom Quarterly Data
Oct16 Jan17 Apr17 Jul17 Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21
ROC (Joel Greenblatt) % 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 163.09 245.39 312.33 317.92 357.88

Competitive Comparison

For the Semiconductors subindustry, Broadcom's ROC (Joel Greenblatt) %, along with its competitors' market caps and ROC (Joel Greenblatt) % 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 ROC (Joel Greenblatt) % Distribution

For the Semiconductors industry and Technology sector, Broadcom's ROC (Joel Greenblatt) % distribution charts can be found below:

* The bar in red indicates where Broadcom's ROC (Joel Greenblatt) % falls into.



Broadcom ROC (Joel Greenblatt) % Calculation

Joel Greenblatt defined Return on Capital differently in his book The Little Book That Still Beats the Market (Little Books. Big Profits) . He defines Return on Capital as follows:

ROC (Joel Greenblatt) %=EBIT/Average of (Net fixed Assets + Net Working Capital)

EBIT stands for Earnings Before Interest and Taxes.

Fixed Assets are also known as non-current assets. They include the Property, Plant and Equipment that the firm needs in its operation.

GuruFocus calculates net working capital as: (Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Deferred Revenue + Other Current Liabilities). We're trying to account for OPERATING assets and liabilities (part of daily business) when calculating working capital. Cash and marketable securities are considered NON-OPERATING assets and are not included in calculation. We will also back out all interest bearing debt, short term debt and the portion of long term debt that is due in the current period from the current liabilities. This debt will be considered when computing cost of capital and it would be inappropriate to count it twice.

Working Capital(Q: Apr. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2425 + 1004 + 1298) - (1671 + 3409 + 1078)
=-1431

Working Capital(Q: Jul. 2021 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(2234 + 1160 + 1137) - (1931 + 3008 + 1283)
=-1691

When net working capital is negative, 0 is used.

So ROC (Joel Greenblatt) % of Broadcom for the quarter that ended in Jul. 2021 can be restated as:

ROC (Joel Greenblatt) %(Q: Jul. 2021 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Apr. 2021  Q: Jul. 2021
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=8564/( ( (2416 + max(-1431, 0)) + (2370 + max(-1691, 0)) )/ 2 )
=8564/( ( 2416 + 2370 )/ 2 )
=8564/2393
=357.88 %

Note: The EBIT data used here is four times the quarterly (Jul. 2021) EBIT 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.


Broadcom  (NAS:AVGO) ROC (Joel Greenblatt) % Explanation

The way Joel Greenblatt defines Return on Capital is a more accurate measure of how efficiently the company generates returns onthe capital actually invested in the business. EBIT is used instead of net income because the tax and interest payment may be affected by factors other than the core business operation. Intangible assets are not included in the calculation because they don't need to be replaced.

Joel Greenblatt uses his definition of Return on Capital and Earnings Yield (Joel Greenblatt) % to rank companies.


Broadcom ROC (Joel Greenblatt) % Related Terms

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


Broadcom Business Description

Broadcom logo
Industry
Technology » Semiconductors NAICS : 334413 SIC : 3674
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 infrastructure software.
Executives
Tan Hock E director, officer: President and CEO BROADCOM INC. 1320 RIDDER PARK DRIVE 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
Samueli Henry director 5300 CALIFORNIA AVENUE IRVINE CA 92617-3038
Brazeal Mark David officer: Chief Legal Officer 1320 RIDDER PARK DRIVE SAN JOSE CA 95131
Fernandez Raul J director 11600 SUNRISE VALLEY DR RESTON VA 20191
Lien Justine director 501 PEARL DRIVE ST. PETERS MO 63376
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
Low Check Kian director 1320 RIDDER PARK DRIVE SAN JOSE CA 95131
Bryant Diane M director 2200 MISSION COLLEGE BLVD SANTA CLARA CA 95054
Delly Gayla J director 3000 TECHNOLOGY DR ANGLETON TX 77515
Hartenstein Eddy W director PUBLIC "-//W3C//DTD HTML 4.0 Transitional//EN"> Ownership Information: HARTENSTEIN EDDY W a.header:link {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:visited {color: #3b4fae; font-weight: bold; text-decoration: underline;} a.header:hover {color: #191970;}
Ingram Bryan officer: SVP & GM, Wireless Semicon Div C/O AVAGO TECHNOLOGIES LIMITED 350 WEST TRIMBLE ROAD, BLDG. 90 SAN JOSE CA 95131
Marks Peter J director C/O AVAGO TECHNOLOGIES U.S. INC. 350 WEST TRIMBLE ROAD SAN JOSE CA 95131

Broadcom Headlines

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