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Broadcom (NAS:AVGO) Piotroski F-Score

: 8 (As of Today)
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Good Sign:

Piotroski F-Score is 8, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Broadcom has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Broadcom's Piotroski F-Score or its related term are showing as below:

AVGO' s Piotroski F-Score Range Over the Past 10 Years
Min: 3   Med: 6   Max: 8
Current: 8

During the past 13 years, the highest Piotroski F-Score of Broadcom was 8. The lowest was 3. And the median was 6.


Broadcom Piotroski F-Score Historical Data

The historical data trend for Broadcom's Piotroski F-Score 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 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.00 5.00 8.00 7.00 8.00

Broadcom Quarterly Data
Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23
Piotroski F-Score 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 7.00 8.00 7.00 9.00 8.00

Competitive Comparison

For the Semiconductors subindustry, Broadcom's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score 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 Piotroski F-Score Distribution

For the Semiconductors industry and Technology sector, Broadcom's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Broadcom's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* 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.

This Year (Oct23) TTM:Last Year (Oct22) TTM:
Net Income was 3774 + 3481 + 3303 + 3524 = $14,082 Mil.
Cash Flow from Operations was 4036 + 4502 + 4719 + 4828 = $18,085 Mil.
Revenue was 8915 + 8733 + 8876 + 9295 = $35,819 Mil.
Gross Profit was 6004 + 6115 + 6164 + 6407 = $24,690 Mil.
Average Total Assets from the begining of this year (Oct22)
to the end of this year (Oct23) was
(73249 + 72976 + 71667 + 71595 + 72861) / 5 = $72469.6 Mil.
Total Assets at the begining of this year (Oct22) was $73,249 Mil.
Long-Term Debt & Capital Lease Obligation was $37,621 Mil.
Total Current Assets was $20,847 Mil.
Total Current Liabilities was $7,405 Mil.
Net Income was 2472 + 2590 + 3074 + 3359 = $11,495 Mil.

Revenue was 7706 + 8103 + 8464 + 8930 = $33,203 Mil.
Gross Profit was 5049 + 5439 + 5681 + 5926 = $22,095 Mil.
Average Total Assets from the begining of last year (Oct21)
to the end of last year (Oct22) was
(75570 + 73224 + 71719 + 71326 + 73249) / 5 = $73017.6 Mil.
Total Assets at the begining of last year (Oct21) was $75,570 Mil.
Long-Term Debt & Capital Lease Obligation was $39,075 Mil.
Total Current Assets was $18,504 Mil.
Total Current Liabilities was $7,052 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Broadcom's current Net Income (TTM) was 14,082. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Broadcom's current Cash Flow from Operations (TTM) was 18,085. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Oct22)
=14082/73249
=0.19224836

ROA (Last Year)=Net Income/Total Assets (Oct21)
=11495/75570
=0.15211063

Broadcom's return on assets of this year was 0.19224836. Broadcom's return on assets of last year was 0.15211063. ==> This year is higher. ==> Score 1.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Broadcom's current Net Income (TTM) was 14,082. Broadcom's current Cash Flow from Operations (TTM) was 18,085. ==> 18,085 > 14,082 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Oct23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct22 to Oct23
=37621/72469.6
=0.51912802

Gearing (Last Year: Oct22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Oct21 to Oct22
=39075/73017.6
=0.53514495

Broadcom's gearing of this year was 0.51912802. Broadcom's gearing of last year was 0.53514495. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Oct23)=Total Current Assets/Total Current Liabilities
=20847/7405
=2.81525996

Current Ratio (Last Year: Oct22)=Total Current Assets/Total Current Liabilities
=18504/7052
=2.62393647

Broadcom's current ratio of this year was 2.81525996. Broadcom's current ratio of last year was 2.62393647. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Broadcom's number of shares in issue this year was 427. Broadcom's number of shares in issue last year was 412. ==> There is larger number of shares in issue this year. ==> Score 0.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=24690/35819
=0.68929898

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=22095/33203
=0.66545192

Broadcom's gross margin of this year was 0.68929898. Broadcom's gross margin of last year was 0.66545192. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Oct22)
=35819/73249
=0.48900326

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Oct21)
=33203/75570
=0.43936747

Broadcom's asset turnover of this year was 0.48900326. Broadcom's asset turnover of last year was 0.43936747. ==> This year's asset turnover is higher. ==> Score 1.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+1+1+1+1+0+1+1
=8

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Broadcom has an F-score of 8. It is a good or high score, which usually indicates a very healthy situation.

Broadcom  (NAS:AVGO) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Broadcom Piotroski F-Score Related Terms

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


Broadcom (NAS:AVGO) Business Description

Address
3421 Hillview Avenue, Palo Alto, CA, USA, 94304
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.
Executives
Kirsten M. Spears officer: Principal Accounting Officer 1320 RIDDER PARK, SAN JOSE CA 95131
Hock E Tan director, officer: President and CEO BROADCOM INC., 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Eddy W Hartenstein director
Mark David Brazeal officer: Chief Legal Officer 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Charlie B Kawwas officer: SVP & Chief Sales Officer C/O AVAGO TECHNOLOGIES U.S. INC., 350 WEST TRIMBLE ROAD, SAN JOSE CA 95131
Justine Lien director 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Harry L. You director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Check Kian Low director 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Raul J Fernandez director 11600 SUNRISE VALLEY DR, RESTON VA 20191
Gayla J Delly director 3000 TECHNOLOGY DR, ANGLETON TX 77515
Diane M Bryant director 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054
Thomas H. Krause officer: Chief Financial Officer 1320 RIDDER PARK, SAN JOSE CA 95131
Henry Samueli director, officer: Chief Technical Officer 5300 CALIFORNIA AVENUE, IRVINE CA 92617-3038
Bryan Ingram officer: SVP & GM, Wireless Semicon Div C/O AVAGO TECHNOLOGIES LIMITED, 350 WEST TRIMBLE ROAD, BLDG. 90, SAN JOSE CA 95131
Donald Macleod director