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Broadcom (NAS:AVGO) Inventory-to-Revenue

: 0.21 (As of Jul. 2022)
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Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Broadcom's Average Total Inventories for the quarter that ended in Jul. 2022 was $1,753 Mil. Broadcom's Revenue for the three months ended in Jul. 2022 was $8,464 Mil. Broadcom's Inventory-to-Revenue for the quarter that ended in Jul. 2022 was 0.21.

Broadcom's Inventory-to-Revenue for the quarter that ended in Jul. 2022 increased from Apr. 2022 (0.20) to Apr. 2022 (0.21)

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Broadcom's Days Inventory for the three months ended in Jul. 2022 was 57.48.

Inventory Turnover measures how fast the company turns over its inventory within a year. Broadcom's Inventory Turnover for the quarter that ended in Jul. 2022 was 1.59.


Broadcom (NAS:AVGO) Inventory-to-Revenue Historical Data

The historical data trend for Broadcom's Inventory-to-Revenue 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
Inventory-to-Revenue Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.08 0.06 0.04 0.04 0.04

Broadcom Quarterly Data
Oct17 Jan18 Apr18 Jul18 Oct18 Jan19 Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22
Inventory-to-Revenue 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 0.16 0.17 0.18 0.20 0.21

Broadcom (NAS:AVGO) Inventory-to-Revenue Competitive Comparison

For the Semiconductors subindustry, Broadcom's Inventory-to-Revenue, along with its competitors' market caps and Inventory-to-Revenue 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 (NAS:AVGO) Inventory-to-Revenue Distribution

For the Semiconductors industry and Technology sector, Broadcom's Inventory-to-Revenue distribution charts can be found below:

* The bar in red indicates where Broadcom's Inventory-to-Revenue falls into.



Broadcom Inventory-to-Revenue Calculation

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Broadcom's Inventory-to-Revenue for the fiscal year that ended in Oct. 2021 is calculated as

Inventory-to-Revenue (A: Oct. 2021 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Oct. 2020 ) + Total Inventories (A: Oct. 2021 )) / count ) / Revenue (A: Oct. 2021 )
=( (1003 + 1297) / 2 ) / 27450
=1150 / 27450
=0.04

Broadcom's Inventory-to-Revenue for the quarter that ended in Jul. 2022 is calculated as

Inventory-to-Revenue (Q: Jul. 2022 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Apr. 2022 ) + Total Inventories (Q: Jul. 2022 )) / count ) / Revenue (Q: Jul. 2022 )
=( (1668 + 1838) / 2 ) / 8464
=1753 / 8464
=0.21

* 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.


Broadcom  (NAS:AVGO) Inventory-to-Revenue Explanation

An increase in Inventory-to-Revenue from one quarter to the next indicates that one of the following is happening:

1. investment in inventory is growing more rapidly than revenue
2. revenue are dropping
No matter which situation is causing the problem, an increase in the Inventory-to-Revenue may signal an oncoming cash flow problem.

Likewise, a decrease in the Inventory-to-Revenue from one quarter to next indicates that one of these is occurring:

1. investment in inventory is shrinking in relation to revenue
2. revenue are increasing
No matter which situation is causing the reduction in the Inventory-to-Revenue, either one suggests that business's inventory levels and its cash flow are effectively managed.

More Related Terms:

1. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Broadcom's Days Inventory for the three months ended in Jul. 2022 is calculated as:

Days Inventory=Average Total Inventories (Q: Jul. 2022 )/Cost of Goods Sold (Q: Jul. 2022 )*Days in Period
=1753/2783*365 / 4
=57.48

2. Inventory Turnover measures how fast the company turns over its inventory within a year.

Broadcom's Inventory Turnover for the quarter that ended in Jul. 2022 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Jul. 2022 ) / Average Total Inventories (Q: Jul. 2022 )
=2783 / 1753
=1.59

* 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.


Broadcom Inventory-to-Revenue Related Terms

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


Broadcom (NAS:AVGO) 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 (NAS:AVGO) Headlines

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