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Broadcom (Broadcom) ROCE %

: 8.14% (As of Jan. 2024)
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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Broadcom's annualized ROCE % for the quarter that ended in Jan. 2024 was 8.14%.


Broadcom ROCE % Historical Data

The historical data trend for Broadcom's ROCE % 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 Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
ROCE %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 6.77 6.48 12.46 20.92 25.40

Broadcom Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
ROCE % 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 25.79 25.43 24.80 26.97 8.14

Broadcom ROCE % Calculation

Broadcom's annualized ROCE % for the fiscal year that ended in Oct. 2023 is calculated as:

ROCE %=EBIT/( (Capital Employed+Capital Employed)/ count )
(A: Oct. 2023 )  (A: Oct. 2022 )(A: Oct. 2023 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(A: Oct. 2023 )  (A: Oct. 2022 )(A: Oct. 2023 )
=16719/( ( (73249 - 7052) + (72861 - 7405) )/ 2 )
=16719/( (66197+65456)/ 2 )
=16719/65826.5
=25.40 %

Broadcom's ROCE % of for the quarter that ended in Jan. 2024 is calculated as:

ROCE %=EBIT (1)/( (Capital Employed+Capital Employed)/ count )
(Q: Jan. 2024 )  (Q: Oct. 2023 )(Q: Jan. 2024 )
=EBIT/( ( (Total Assets - Total Current Liabilities)+(Total Assets - Total Current Liabilities) )/ count )
(Q: Jan. 2024 )  (Q: Oct. 2023 )(Q: Jan. 2024 )
=9072/( ( (72861 - 7405) + (177870 - 20369) )/ 2 )
=9072/( ( 65456 + 157501 )/ 2 )
=9072/111478.5
=8.14 %

(1) Note: The EBIT data used here is four times the quarterly (Jan. 2024) EBIT 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.


Broadcom  (NAS:AVGO) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.


Broadcom ROCE % Related Terms

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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

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