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Broadcom Piotroski F-Score

: 6 (As of Today)
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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 6 indicating the company's financial situation is typical for a stable company.

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: 2   Med: 6   Max: 8
Current: 6

During the past 13 years, the highest Piotroski F-Score of Broadcom was 8. The lowest was 2. 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 Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Piotroski F-Score
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 8.00 6.00 6.00 5.00 8.00

Broadcom Quarterly Data
Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
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 8.00 8.00 8.00 7.00 6.00

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 (Jul22) TTM:Last Year (Jul21) TTM:
Net Income was 1989 + 2472 + 2590 + 3074 = $10,125 Mil.
Cash Flow from Operations was 3541 + 3486 + 4243 + 4424 = $15,694 Mil.
Revenue was 7407 + 7706 + 8103 + 8464 = $31,680 Mil.
Gross Profit was 4638 + 5049 + 5439 + 5681 = $20,807 Mil.
Average Total Assets from the begining of this year (Jul21)
to the end of this year (Jul22) was
(75880 + 75570 + 73224 + 71719 + 71326) / 5 = $73543.8 Mil.
Total Assets at the begining of this year (Jul21) was $75,880 Mil.
Long-Term Debt & Capital Lease Obligation was $39,191 Mil.
Total Current Assets was $15,561 Mil.
Total Current Liabilities was $6,702 Mil.
Net Income was 1324 + 1378 + 1493 + 1876 = $6,071 Mil.

Revenue was 6467 + 6655 + 6610 + 6778 = $26,510 Mil.
Gross Profit was 3747 + 3952 + 4057 + 4197 = $15,953 Mil.
Average Total Assets from the begining of last year (Jul20)
to the end of last year (Jul21) was
(79298 + 75933 + 76972 + 75524 + 75880) / 5 = $76721.4 Mil.
Total Assets at the begining of last year (Jul20) was $79,298 Mil.
Long-Term Debt & Capital Lease Obligation was $40,178 Mil.
Total Current Assets was $15,636 Mil.
Total Current Liabilities was $6,501 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 10,125. ==> 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 15,694. ==> 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 (Jul21)
=10125/75880
=0.13343437

ROA (Last Year)=Net Income/Total Assets (Jul20)
=6071/79298
=0.07655931

Broadcom's return on assets of this year was 0.13343437. Broadcom's return on assets of last year was 0.07655931. ==> 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 10,125. Broadcom's current Cash Flow from Operations (TTM) was 15,694. ==> 15,694 > 10,125 ==> 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: Jul22)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jul21 to Jul22
=39191/73543.8
=0.53289332

Gearing (Last Year: Jul21)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Jul20 to Jul21
=40178/76721.4
=0.523687

Broadcom's gearing of this year was 0.53289332. Broadcom's gearing of last year was 0.523687. ==> Last year is lower than this year ==> Score 0.

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: Jul22)=Total Current Assets/Total Current Liabilities
=15561/6702
=2.32184423

Current Ratio (Last Year: Jul21)=Total Current Assets/Total Current Liabilities
=15636/6501
=2.40516844

Broadcom's current ratio of this year was 2.32184423. Broadcom's current ratio of last year was 2.40516844. ==> Last year's current ratio is higher ==> Score 0.

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 430. Broadcom's number of shares in issue last year was 429. ==> 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
=20807/31680
=0.65678662

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=15953/26510
=0.60177292

Broadcom's gross margin of this year was 0.65678662. Broadcom's gross margin of last year was 0.60177292. ==> 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 (Jul21)
=31680/75880
=0.41750132

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Jul20)
=26510/79298
=0.33430856

Broadcom's asset turnover of this year was 0.41750132. Broadcom's asset turnover of last year was 0.33430856. ==> 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+0+0+0+1+1
=6

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

Broadcom has an F-score of 6 indicating the company's financial situation is typical for a stable company.

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 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

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