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Broadcom (Broadcom) Return-on-Tangible-Asset

: 18.14% (As of Jan. 2024)
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Return-on-Tangible-Asset is calculated as Net Income divided by its average total tangible assets. Total tangible assets equals to Total Assets minus Intangible Assets. Broadcom's annualized Net Income for the quarter that ended in Jan. 2024 was $5,300 Mil. Broadcom's average total tangible assets for the quarter that ended in Jan. 2024 was $29,220 Mil. Therefore, Broadcom's annualized Return-on-Tangible-Asset for the quarter that ended in Jan. 2024 was 18.14%.

The historical rank and industry rank for Broadcom's Return-on-Tangible-Asset or its related term are showing as below:

AVGO' s Return-on-Tangible-Asset Range Over the Past 10 Years
Min: -22.11   Med: 23.19   Max: 78.26
Current: 45.61

During the past 13 years, Broadcom's highest Return-on-Tangible-Asset was 78.26%. The lowest was -22.11%. And the median was 23.19%.

AVGO's Return-on-Tangible-Asset is ranked better than
99.6% of 994 companies
in the Semiconductors industry
Industry Median: 2.56 vs AVGO: 45.61

Broadcom Return-on-Tangible-Asset Historical Data

The historical data trend for Broadcom's Return-on-Tangible-Asset 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.

Array ( [0] => - [1] => - [2] => - [3] => - [4] => - [5] => 21.22 [6] => 20.46 [7] => 36.96 [8] => 53.13 [9] => 58.84 )
Broadcom Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Return-on-Tangible-Asset
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 21.22 20.46 36.96 53.13 58.84

Broadcom Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Return-on-Tangible-Asset 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 66.12 60.86 57.52 57.93 18.14

Competitive Comparison

For the Semiconductors subindustry, Broadcom's Return-on-Tangible-Asset, along with its competitors' market caps and Return-on-Tangible-Asset 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 Return-on-Tangible-Asset Distribution

For the Semiconductors industry and Technology sector, Broadcom's Return-on-Tangible-Asset distribution charts can be found below:

* The bar in red indicates where Broadcom's Return-on-Tangible-Asset falls into.



Broadcom Return-on-Tangible-Asset Calculation

Broadcom's annualized Return-on-Tangible-Asset for the fiscal year that ended in Oct. 2023 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(A: Oct. 2023 )  (A: Oct. 2022 )(A: Oct. 2023 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(A: Oct. 2023 )  (A: Oct. 2022 )(A: Oct. 2023 )
=14082/( (22524+25341)/ 2 )
=14082/23932.5
=58.84 %

Broadcom's annualized Return-on-Tangible-Asset for the quarter that ended in Jan. 2024 is calculated as:

Return-on-Tangible-Asset=Net Income/( (Total Tangible Assets+Total Tangible Assets)/ count )
(Q: Jan. 2024 )  (Q: Oct. 2023 )(Q: Jan. 2024 )
=Net Income/( (Total Assets - Intangible Assets+Total Assets - Intangible Assets)/ count )
(Q: Jan. 2024 )  (Q: Oct. 2023 )(Q: Jan. 2024 )
=5300/( (25341+33099)/ 2 )
=5300/29220
=18.14 %

* 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.

In the calculation of annual Return-on-Tangible-Asset, the net income of the last fiscal year and the average total tangible assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (Jan. 2024) net income data.


Broadcom  (NAS:AVGO) Return-on-Tangible-Asset Explanation

Return-on-Tangible-Asset measures the rate of return on the average total tangible assets (total assets minus intangible assets). Tangible means physical in nature. Intangible Assets are assets that are not physical in nature, and typically "derive their value from legal or intellectual rights." Return-on-Tangible-Asset measures a firm's efficiency at generating profits from its tangible assets. It shows how well a company uses what it has to generate earnings. Return-on-Tangible-Assets can vary drastically across industries. Therefore, Return-on-Tangible-Asset should not be used to compare companies in different industries.


Be Aware

Like ROE and ROA, Return-on-Tangible-Asset is calculated with only 12 months data. Fluctuations in the company’s earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. Return-on-Tangible-Asset can be affected by events such as stock buyback or issuance, and by a company’s tax rate and its interest payment. Return-on-Tangible-Asset may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high Return-on-Tangible-Asset may indicate vulnerability in the durability of the competitive advantage.


Broadcom Return-on-Tangible-Asset Related Terms

Thank you for viewing the detailed overview of Broadcom's Return-on-Tangible-Asset 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