GURUFOCUS.COM » STOCK LIST » USA » NAS » Broadcom Inc (NAS:AVGO) » Definitions » Return-on-Tangible-Asset
Switch to:

Broadcom Return-on-Tangible-Asset

: 64.01% (As of Jul. 2022)
View and export this data going back to 2009. Start your Free Trial

Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Broadcom's annualized Net Income for the quarter that ended in Jul. 2022 was $12,296 Mil. Broadcom's average total tangible assets for the quarter that ended in Jul. 2022 was $19,210 Mil. Therefore, Broadcom's annualized Return-on-Tangible-Asset for the quarter that ended in Jul. 2022 was 64.01%.

The historical rank and industry rank for Broadcom's Return-on-Tangible-Asset or its related term are showing as below:

AVGO' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -22.11   Med: 22.13   Max: 78.26
Current: 51.45

During the past 13 years, Broadcom's highest Return-on-Tangible-Asset was 78.26%. The lowest was -22.11%. And the median was 22.13%.

AVGO's Return-on-Tangible-Asset is ranked better than
99.57% of 924 companies
in the Semiconductors industry
Industry Median: 6.76 vs AVGO: 51.45

Broadcom Return-on-Tangible-Asset Historical Data

The historical data trend for Broadcom's Return-on-Tangible-Asset 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
Return-on-Tangible-Asset
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.28 78.26 21.22 20.46 36.96

Broadcom Quarterly Data
Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
Return-on-Tangible-Asset 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 39.81 39.34 49.10 53.95 64.01

Competitive Comparison

For the Semiconductors subindustry, Broadcom's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Distribution

For the Semiconductors industry and Technology sector, Broadcom's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Broadcom's Return-on-Tangible-Asset falls into.



Broadcom Return-on-Tangible-Asset Calculation

Broadcom's annualized Return-on-Tangible-Asset for the fiscal year that ended in Oct. 2021 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Oct. 2021 )  (A: Oct. 2020 )(A: Oct. 2021 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Oct. 2021 )  (A: Oct. 2020 )(A: Oct. 2021 )
=6736/( (15704+20746)/ 2 )
=6736/18225
=36.96 %

Broadcom's annualized Return-on-Tangible-Asset for the quarter that ended in Jul. 2022 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Jul. 2022 )  (Q: Apr. 2022 )(Q: Jul. 2022 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Jul. 2022 )  (Q: Apr. 2022 )(Q: Jul. 2022 )
=12296/( (18875+19544)/ 2 )
=12296/19209.5
=64.01 %

* 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 Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible 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.


Broadcom  (NAS:AVGO) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset 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. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset 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 Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Broadcom Return-on-Tangible-Asset Related Terms

Thank you for viewing the detailed overview of Broadcom's Return-on-Tangible-Asset 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

Broadcom Headlines

From GuruFocus

Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)