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Broadcom (NAS:AVGO) ROE %

: 58.70% (As of Jul. 2022)
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ROE % is calculated as Net Income divided by its average Total Stockholders Equity 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 Stockholders Equity over the quarter that ended in Jul. 2022 was $20,947 Mil. Therefore, Broadcom's annualized ROE % for the quarter that ended in Jul. 2022 was 58.70%.

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

AVGO' s ROE % Range Over the Past 10 Years
Min: -14.73   Med: 16.46   Max: 52.23
Current: 44.31

During the past 13 years, Broadcom's highest ROE % was 52.23%. The lowest was -14.73%. And the median was 16.46%.

AVGO's ROE % is ranked better than
95.96% of 915 companies
in the Semiconductors industry
Industry Median: 10.67 vs AVGO: 44.31

Broadcom (NAS:AVGO) ROE % Historical Data

The historical data trend for Broadcom's ROE % 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
ROE % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.11 52.23 10.55 12.11 27.56

Broadcom Quarterly Data
Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
ROE % 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 31.05 32.24 41.21 47.11 58.70

Broadcom (NAS:AVGO) ROE % Competitive Comparison

For the Semiconductors subindustry, Broadcom's ROE %, along with its competitors' market caps and ROE % 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 (NAS:AVGO) ROE % Distribution

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

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



Broadcom ROE % Calculation

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

ROE %=Net Income (A: Oct. 2021 )/( (Total Stockholders Equity (A: Oct. 2020 )+Total Stockholders Equity (A: Oct. 2021 ))/ count )
=6736/( (23901+24989)/ 2 )
=6736/24445
=27.56 %

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

ROE %=Net Income (Q: Jul. 2022 )/( (Total Stockholders Equity (Q: Apr. 2022 )+Total Stockholders Equity (Q: Jul. 2022 ))/ count )
=12296/( (20990+20903)/ 2 )
=12296/20946.5
=58.70 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity 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. ROE % is displayed in the 30-year financial page.


Broadcom  (NAS:AVGO) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Jul. 2022 )
=Net Income/Total Stockholders Equity
=12296/20946.5
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(12296 / 33856)*(33856 / 71522.5)*(71522.5 / 20946.5)
=Net Margin %*Asset Turnover*Equity Multiplier
=36.32 %*0.4734*3.4145
=ROA %*Equity Multiplier
=17.19 %*3.4145
=58.70 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Jul. 2022 )
=Net Income/Total Stockholders Equity
=12296/20946.5
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (12296 / 13348) * (13348 / 14976) * (14976 / 33856) * (33856 / 71522.5) * (71522.5 / 20946.5)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 0.9212 * 0.8913 * 44.23 % * 0.4734 * 3.4145
=58.70 %

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. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Broadcom ROE % Related Terms

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


Broadcom (NAS:AVGO) 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

Broadcom (NAS:AVGO) Headlines

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