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Broadcom (Broadcom) Inventory-to-Revenue : 0.27 (As of Sep. 2015)


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What is Broadcom Inventory-to-Revenue?

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 Sep. 2015 was $582 Mil. Broadcom's Revenue for the three months ended in Sep. 2015 was $2,187 Mil. Broadcom's Inventory-to-Revenue for the quarter that ended in Sep. 2015 was 0.27.

Broadcom's Inventory-to-Revenue for the quarter that ended in Sep. 2015 declined from Jun. 2015 (0.30) to Jun. 2015 (0.27)

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.

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 Sep. 2015 was 52.32.

Inventory Turnover measures how fast the company turns over its inventory within a year. Broadcom's Inventory Turnover for the quarter that ended in Sep. 2015 was 1.74.


Broadcom 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 Inventory-to-Revenue Chart

Broadcom Annual Data
Trend Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Dec12 Dec13 Dec14
Inventory-to-Revenue
Get a 7-Day Free Trial Premium Member Only Premium Member Only 0.07 0.07 0.06 0.06 0.06

Broadcom Quarterly Data
Dec10 Mar11 Jun11 Sep11 Dec11 Mar12 Jun12 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15
Inventory-to-Revenue 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 0.27 0.27 0.28 0.30 0.27

Competitive Comparison of Broadcom's Inventory-to-Revenue

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's Inventory-to-Revenue Distribution in the Semiconductors Industry

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 Dec. 2014 is calculated as

Inventory-to-Revenue (A: Dec. 2014 )
=Average Total Inventories / Revenue
=( (Total Inventories (A: Dec. 2013 ) + Total Inventories (A: Dec. 2014 )) / count ) / Revenue (A: Dec. 2014 )
=( (525 + 531) / 2 ) / 8428
=528 / 8428
=0.06

Broadcom's Inventory-to-Revenue for the quarter that ended in Sep. 2015 is calculated as

Inventory-to-Revenue (Q: Sep. 2015 )
=Average Total Inventories / Revenue
=( (Total Inventories (Q: Jun. 2015 ) + Total Inventories (Q: Sep. 2015 )) / count ) / Revenue (Q: Sep. 2015 )
=( (612 + 552) / 2 ) / 2187
=582 / 2187
=0.27

* 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:BRCM) 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 Sep. 2015 is calculated as:

Days Inventory=Average Total Inventories (Q: Sep. 2015 )/Cost of Goods Sold (Q: Sep. 2015 )*Days in Period
=582/1015*365 / 4
=52.32

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 Sep. 2015 is calculated as

Inventory Turnover=Cost of Goods Sold (Q: Sep. 2015 ) / Average Total Inventories (Q: Sep. 2015 )
=1015 / 582
=1.74

* 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 (Broadcom) Business Description

Traded in Other Exchanges
N/A
Address
Broadcom Corp was incorporated in California in August 16, 1991. The Company is provider of semiconductors for wired and wireless communications. It provides a portfolio of SoCs that seamlessly deliver voice, video, data and multimedia connectivity in the home, office and mobile environments. Its business segments include Broadband and Connectivity; and Infrastructure and Networking. The solutions in Broadband and Connectivity segment include set-top box solutions, broadband modem solutions, connectivity solutions, and a range of other technologies. Customer products incorporating its solutions in Broadband and Connectivity segment include set-top boxes, or STBs, central office broadband access equipment, residential gateways, stand-alone broadband access modems, and a range of consumer devices, including smartphones and tablets, wearable devices, PCs, laptops, access points, and others. It offers complete platform solutions for cable, satellite, Internet Protocol, over-the-top and terrestrial STBs. Its solutions in Infrastructure and Networking segment include Ethernet switches and PHYs, which includes switches and fabrics; copper and optical transceivers; backplane and optical front-end physical layer devices; processors (including multicore processors); and other Infrastructure and Networking technologies (including knowledge-based processors, VoIP solutions, microwave backhaul solutions and radio head digital front ends). It also offers a family of Ethernet controllers. Customer products incorporating its solutions in Infrastructure and Networking segment include service provider metro equipment; edge and core routers, wireless infrastructure and wireless access points; switches and routers; servers and workstations; network interface cards; LAN on motherboard applications; optical networks and dense wave division multiplexing applications; security appliances; storage controllers; microwave links for wireless backhaul; cellular remote radio heads; automobile Ethernet networks; point-of-sale equipment; and other embedded SoC subsystems. Its customers shipping wired and/or wireless communications equipment and devices incorporating its products include Alcatel-Lucent, Apple, Arris, Cisco, Huawei Technologies, Humax, Pace, Samsung, Technicolor, ZTE. Its trademark includes Broadcom and BroadR-Reach. The Company's competitors include Intel Corporation, Marvell Technology Group Ltd., Mediatek Inc., Qualcomm Incorporation, and STMicroelectronics NV with respect to Broadband and Connectivity segment; and Cavium, Inc., Freescale Semiconductor,Ltd., Intel Corporation, Marvell Technology Group Ltd., and Mellanox with respect to Infrastructure and Networking segment. The Company's production is subject to environmental rules and regulations.
Executives
Nancy H Handel director 567 SAN NICOLAS DRIVE, SUITE 360, NEWPORT BEACH CA 92660
Rajiv Ramaswami officer: Former EVP&GM, ING 5300 CALIFORNIA AVENUE, IRVINE CA 92617
Robert J Finocchio director C/O ALTERA CORP 101 INNOVATION DRIVE SAN JOSE CA 95134
John E Major director C/O LENNOX INTERNATIONAL INC., 2140 LAKE PARK BOULEVARD, RICHARDSON TX 75080-2254
Michael E. Hurlston officer: Former EVP, Worldwide Sales 5300 CALIFORNIA AVENUE, IRVINE CA 92617
Neil Y. Kim officer: Former EVP, Ops. & Central Eng MARVELL SEMICONDUCTOR, INC., 5488 MARVELL LANE, SANTA CLARA CA 95054
William T Morrow director 77 BEALE STREET, 32ND FLOOR, SAN FRANCISCO CA 94105
Robert E Switz director 13625 TECHNOLOGY DRIVE, EDEN PRAIRIE MN 55344
Maria Klawe director C/O MICROSOFT CORPORATION, ONE MICROSOFT WAY, REDMOND WA 98052-6399
Eric Brandt officer: Former EVP & CFO C/O DENTSPLY SIRONA INC, 13320 BALLANTYNE CORPORATE PLACE, CHARLOTTE NC 28277
Nancy R Phillips officer: Former EVP, Human Resources 1515 BROADWAY, NEW YORK NY 10036
Eddy W Hartenstein director
Henry Samueli director, officer: Chairman of the Board and CTO 5300 CALIFORNIA AVENUE, IRVINE CA 92617-3038
Scott A Mcgregor director, officer: Former President & CEO 5300 CALIFORNIA AVENUE, IRVINE CA 92617
Robert A. Rango officer: EVP & GM, Mobile&Wireless Grp 5300 CALIFORNIA AVENUE, IRVINE CA 92617

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