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Broadcom Interest Coverage

: 9.22 (As of Jul. 2022)
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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 Jul. 2022 was $3,744 Mil. Broadcom's Interest Expense for the three months ended in Jul. 2022 was $-406 Mil. Broadcom's interest coverage for the quarter that ended in Jul. 2022 was 9.22. 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: 587
Current: 7.3


AVGO's Interest Coverage is ranked worse than
80.99% of 684 companies
in the Semiconductors industry
Industry Median: 44.05 vs AVGO: 7.30

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.

* Premium members only.

Broadcom Annual Data
Trend Oct12 Oct13 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.85 8.55 2.89 2.37 4.60

Broadcom Quarterly Data
Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
Interest Coverage 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 5.19 6.01 7.68 6.59 9.22

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.


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. 2021 is calculated as

Here, for the fiscal year that ended in Oct. 2021, Broadcom's Interest Expense was $-1,885 Mil. Its Operating Income was $8,667 Mil. And its Long-Term Debt & Capital Lease Obligation was $39,440 Mil.

Interest Coverage=-1* Operating Income (A: Oct. 2021 )/Interest Expense (A: Oct. 2021 )
=-1*8667/-1885
=4.60

Broadcom's Interest Coverage for the quarter that ended in Jul. 2022 is calculated as

Here, for the three months ended in Jul. 2022, Broadcom's Interest Expense was $-406 Mil. Its Operating Income was $3,744 Mil. And its Long-Term Debt & Capital Lease Obligation was $39,191 Mil.

Interest Coverage=-1* Operating Income (Q: Jul. 2022 )/Interest Expense (Q: Jul. 2022 )
=-1*3744/-406
=9.22

* 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 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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