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Broadcom (Broadcom) Interest Coverage : 2.92 (As of Jan. 2024)


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What is Broadcom Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Broadcom's Operating Income for the three months ended in Jan. 2024 was $2,703 Mil. Broadcom's Interest Expense for the three months ended in Jan. 2024 was $-926 Mil. Broadcom's interest coverage for the quarter that ended in Jan. 2024 was 2.92. The higher the ratio, the stronger the company's financial strength is.

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

AVGO' s Interest Coverage Range Over the Past 10 Years
Min: 1   Med: 5.55   Max: 10.14
Current: 7.02


AVGO's Interest Coverage is ranked worse than
67.26% of 623 companies
in the Semiconductors industry
Industry Median: 20.41 vs AVGO: 7.02

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Broadcom Interest Coverage Historical Data

The historical data trend for Broadcom's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Broadcom Interest Coverage Chart

Broadcom Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.89 2.37 4.60 8.22 10.14

Broadcom Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Interest Coverage Get a 7-Day Free Trial 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 10.13 9.92 10.02 10.50 2.92

Competitive Comparison of Broadcom's Interest Coverage

For the Semiconductors subindustry, Broadcom's Interest Coverage, along with its competitors' market caps and Interest Coverage 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's Interest Coverage Distribution in the Semiconductors Industry

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

* The bar in red indicates where Broadcom's Interest Coverage falls into.



Broadcom Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Broadcom's Interest Coverage for the fiscal year that ended in Oct. 2023 is calculated as

Here, for the fiscal year that ended in Oct. 2023, Broadcom's Interest Expense was $-1,622 Mil. Its Operating Income was $16,451 Mil. And its Long-Term Debt & Capital Lease Obligation was $37,621 Mil.

Interest Coverage=-1* Operating Income (A: Oct. 2023 )/Interest Expense (A: Oct. 2023 )
=-1*16451/-1622
=10.14

Broadcom's Interest Coverage for the quarter that ended in Jan. 2024 is calculated as

Here, for the three months ended in Jan. 2024, Broadcom's Interest Expense was $-926 Mil. Its Operating Income was $2,703 Mil. And its Long-Term Debt & Capital Lease Obligation was $73,468 Mil.

Interest Coverage=-1* Operating Income (Q: Jan. 2024 )/Interest Expense (Q: Jan. 2024 )
=-1*2703/-926
=2.92

* 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.

The higher the ratio, the stronger the company's Financial Strength is.


Broadcom  (NAS:AVGO) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Broadcom Interest Coverage Related Terms

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


Broadcom (Broadcom) 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

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