Broadcom (Broadcom) Interest Coverage

: 2.92 (As of Jan. 2024)

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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
67.42% of 620 companies
in the Semiconductors industry
Industry Median: 19.975 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.

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Broadcom Annual Data

Trend

Oct14

Oct15

Oct16

Oct17

Oct18

Oct19

Oct20

Oct21

Oct22

Oct23

Interest Coverage

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																10.13	9.92	10.02	10.50	2.92

Competitive Comparison

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 Interest Coverage Distribution

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

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

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Broadcom Inc (NAS:AVGO) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

AVGON:Mexico 1AVGO:Italy 1YDd:UK 1YD0:Germany 1YD:Germany 1YD:Germany 1YD:Germany 1YD:Germany AVGO:Canada AVGO34:Brazil

Address

3421 Hillview Avenue, Palo Alto, CA, USA, 94304

Website

https://www.broadcom.com

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