BroadcomBUE:AVGO 96 ROA % is 20.95% as of Apr. 2026, which is 203% above its 10-year median of 6.92. GuruFocus rates BUE:AVGO with a GF Score™ of 96/100. The stock has 2 warning signs investors should review. Among 1,026 Semiconductors companies, Broadcom ranks better than 92.88% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Broadcom's annualizedNet Income for the quarter that ended in Apr. 2026 was ARS51,800,657.05 Mil.
Broadcom's average Total Assets over the quarter that ended in Apr. 2026 was ARS247,279,968.94 Mil. Therefore, Broadcom's annualized ROA % for the quarter that ended in Apr. 2026 was 20.95%.
The historical rank and industry rank for Broadcom's ROA % or its related term are showing as below:
BUE:AVGO'
s ROA % Range Over the Past 10 Years
Min: -5.75 Med: 6.92 Max: 23.45
Current: 17.24
During the past 13 years, Broadcom's highest ROA % was 23.45%. The lowest was -5.75%. And the median was 6.92%.
BUE:AVGO's ROA % is ranked better than 92.88% of 1026
companies
in the Semiconductors industry
Industry Median: 2.45
vs BUE:AVGO: 17.24
Broadcom (BUE:AVGO) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data.
* 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.
Be Aware
Like ROE, ROA % 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. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % 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 ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Broadcom ROA % Related Terms
Broadcom ROA % Historical Data
* Premium members only.
The historical data trend for Broadcom's ROA % 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.
For the Semiconductors subindustry, Broadcom's ROA %, along with its competitors' market caps and ROA % 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 ROA % vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Broadcom's ROA % distribution charts can be found below:
* The bar in red indicates where Broadcom's ROA % falls into.
* 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 ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Broadcom (BUE:AVGO) has a ROA % of 20.95% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Broadcom and its competitors. This is 203% above median its historical median of 6.92. According to the industry distribution chart, Broadcom ranks #73 out of 1026 companies in the Semiconductors industry, placing it in the top 7.1%.
Is Broadcom's ROA % too high?
Broadcom's current ROA % of 20.95% is 203% above median its 10-year median of 6.92. The Semiconductors industry median ROA % is 2.45. Broadcom's value of 20.95% is 755.1% above this industry median. Based on the distribution chart, Broadcom ranks #73 out of 1026 companies in the Semiconductors industry, which is in the top quartile — a strong position relative to peers. Overall, Broadcom has a GF Score™ of 96/100, reflecting its overall financial health beyond just this single metric.
How does Broadcom's ROA % compare to MU and AMD?
According to the Semiconductors industry distribution chart, Broadcom ranks #73 out of 1026 companies for ROA %. This places Broadcom in the top 7% of its industry — outperforming the majority of peers. The industry median ROA % is 2.45. Broadcom's value of 20.95% is 755.1% above this benchmark. While the company's 10-year median is 6.92 vs. the industry median of 2.45, Broadcom has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Semiconductors company?
The median ROA % among Semiconductors companies is 2.45, based on 1,026 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Broadcom's current ROA % of 20.95% is 755.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Broadcom and its competitors. For the Semiconductors industry, the median ROA % is 2.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Broadcom's current ROA % is 20.95%, which is 203% above median its own 10-year median of 6.92. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Broadcom stock overvalued right now?
Broadcom (BUE:AVGO) has a current ROA % of 20.95%. The current ROA % is 20.95%, which is 203% above median its 10-year median of 6.92 and 755.1% above the Semiconductors industry median of 2.45. Broadcom's overall GF Score™ is 96/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Broadcom (BUE:AVGO), the current ROA % is 20.95% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Broadcom is one of the largest semiconductor companies in the world and has also expanded into infrastructure software. Its semiconductors primarily serve computing and networking, with custom AI accelerators now accounting for the bulk of the business. It is primarily a fabless designer, but holds some manufacturing in-house, such as for its best-of-breed film bulk acoustic resonator 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 VMware, Brocade, CA Technologies, and Symantec in software.
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