Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Broadcom Inc., profitability ratios
Based on: 10-K (reporting date: 2025-11-02), 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01).
- Gross Profit Margin
- The gross profit margin demonstrated a generally upward trend from 56.58% in 2020 to a peak of 68.93% in 2023, indicating improving efficiency in core operations over these years. A decline was observed in 2024, falling to 63.03%, before recovering somewhat to 67.77% in 2025, suggesting some fluctuations potentially due to cost pressures or changes in product mix.
- Operating Profit Margin
- The operating profit margin showed a strong increase from 16.8% in 2020 to 45.25% in 2023, reflecting improved operational efficiency and control over expenses. However, there was a notable decline to 26.1% in 2024, followed by a partial recovery to 39.89% in 2025, indicating volatility in operational profitability possibly linked to market conditions or expense management challenges.
- Net Profit Margin
- The net profit margin aggregated an upward trajectory from 12.39% in 2020 to 39.31% in 2023, signaling enhanced overall profitability. The margin dramatically decreased to 11.43% in 2024, then increased to 36.2% in 2025, implying significant fluctuations in net earnings that could relate to non-operating items, tax impacts, or unusual expenses during 2024.
- Return on Equity (ROE)
- ROE displayed a substantial increase over time, rising from 12.4% in 2020 to a peak of 58.7% in 2023, highlighting strong growth in profitability relative to shareholders' equity. This figure sharply dropped to 8.71% in 2024 before improving to 28.45% in 2025, indicating a period of diminished return to equity holders potentially driven by reduced profitability or increased equity base fluctuations.
- Return on Assets (ROA)
- ROA followed a similar pattern of growth and volatility, increasing from 3.9% in 2020 to 19.33% in 2023, demonstrating enhanced efficiency in asset utilization. A substantial decline to 3.56% occurred in 2024, with a recovery to 13.52% in 2025, reflecting temporary asset utilization challenges or decreased net income impact on asset returns.
Return on Sales
Return on Investment
Gross Profit Margin
Broadcom Inc., gross profit margin calculation, comparison to benchmarks
| Nov 2, 2025 | Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross margin | 43,294) | 32,509) | 24,690) | 22,095) | 16,844) | 13,516) | |
| Net revenue | 63,887) | 51,574) | 35,819) | 33,203) | 27,450) | 23,888) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 67.77% | 63.03% | 68.93% | 66.55% | 61.36% | 56.58% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 49.52% | 49.35% | 46.12% | 44.93% | 48.25% | — | |
| Analog Devices Inc. | 61.47% | 57.08% | 64.01% | 62.70% | 61.83% | 65.87% | |
| Applied Materials Inc. | 48.67% | 47.46% | 46.70% | 46.51% | 47.32% | 44.72% | |
| Intel Corp. | 34.77% | 32.66% | 40.04% | 42.61% | 55.45% | — | |
| KLA Corp. | 60.91% | 59.97% | 59.81% | 61.00% | 59.93% | 57.81% | |
| Lam Research Corp. | 48.71% | 47.32% | 44.62% | 45.69% | 46.53% | 45.88% | |
| Micron Technology Inc. | 39.79% | 22.35% | -9.11% | 45.18% | 37.62% | 30.57% | |
| NVIDIA Corp. | 74.99% | 72.72% | 56.93% | 64.93% | 62.34% | 61.99% | |
| Qualcomm Inc. | 55.43% | 56.21% | 55.70% | 57.84% | 57.51% | 60.67% | |
| Texas Instruments Inc. | — | 58.14% | 62.90% | 68.76% | 67.47% | 64.10% | |
Based on: 10-K (reporting date: 2025-11-02), 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01).
1 2025 Calculation
Gross profit margin = 100 × Gross margin ÷ Net revenue
= 100 × 43,294 ÷ 63,887 = 67.77%
2 Click competitor name to see calculations.
- Net Revenue Trend
- The net revenue exhibits a consistent upward trajectory over the six-year period, increasing from $23,888 million in 2020 to $63,887 million in 2025. This represents an overall growth of approximately 167%. The revenue growth appears steady each year, with particularly notable jumps in the last two periods, indicating strong sales expansion or market penetration.
- Gross Margin Trend
- Gross margin follows a similarly positive trend, rising from $13,516 million in 2020 to $43,294 million in 2025. The increase is substantial and outpaces net revenue growth in absolute terms, suggesting improvements in cost management or product mix favoring higher-margin offerings. The largest incremental increases occur in the final two years, consistent with the revenue pattern.
- Gross Profit Margin Percentage
- The gross profit margin percentage shows variability but generally remains high throughout the period. It rises from 56.58% in 2020 to peak at 68.93% in 2023. There is a decline to 63.03% in 2024 before recovering to 67.77% in 2025. This pattern suggests that gross profitability has generally improved, but there has been some fluctuation possibly due to cost fluctuations, pricing strategies, or changes in product mix. The margin remains above 60% for most years, indicating strong cost efficiency or premium pricing power.
- Overall Insights
- The financial data reveals a robust growth profile characterized by significant increases in both sales and gross margin over the analyzed timeframe. Despite some variability in gross profit margin percentage, the company maintains a healthy level of gross profitability, suggesting effective management of production costs and favorable market conditions. The spikes in revenue and gross margin in the last two years imply accelerated growth phases or successful strategic initiatives. The continuity in positive trends highlights sustained operational strength and potential competitive advantages.
Operating Profit Margin
Broadcom Inc., operating profit margin calculation, comparison to benchmarks
| Nov 2, 2025 | Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income | 25,484) | 13,463) | 16,207) | 14,225) | 8,519) | 4,014) | |
| Net revenue | 63,887) | 51,574) | 35,819) | 33,203) | 27,450) | 23,888) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 39.89% | 26.10% | 45.25% | 42.84% | 31.03% | 16.80% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 10.66% | 7.37% | 1.77% | 5.36% | 22.20% | — | |
| Analog Devices Inc. | 26.61% | 21.56% | 31.07% | 27.29% | 23.12% | 26.74% | |
| Applied Materials Inc. | 29.22% | 28.95% | 28.86% | 30.20% | 29.87% | 25.37% | |
| Intel Corp. | -4.19% | -21.99% | 0.17% | 3.70% | 24.62% | — | |
| KLA Corp. | 39.28% | 34.10% | 38.06% | 39.67% | 35.97% | 25.87% | |
| Lam Research Corp. | 32.01% | 28.61% | 29.69% | 31.24% | 30.64% | 26.62% | |
| Micron Technology Inc. | 26.14% | 5.19% | -36.97% | 31.54% | 22.68% | 14.01% | |
| NVIDIA Corp. | 62.42% | 54.12% | 15.66% | 37.31% | 27.18% | 26.07% | |
| Qualcomm Inc. | 27.90% | 25.85% | 21.74% | 35.88% | 29.16% | 26.58% | |
| Texas Instruments Inc. | — | 34.94% | 41.85% | 50.63% | 48.84% | 40.76% | |
| Operating Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 21.36% | 18.50% | 27.34% | 28.30% | — | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | — | 26.60% | 24.42% | 26.32% | 26.64% | — | |
Based on: 10-K (reporting date: 2025-11-02), 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01).
1 2025 Calculation
Operating profit margin = 100 × Operating income ÷ Net revenue
= 100 × 25,484 ÷ 63,887 = 39.89%
2 Click competitor name to see calculations.
The financial data reveals notable trends in the company's operating income, net revenue, and operating profit margin over a six-year period.
- Operating Income
- Operating income shows a general upward trend, increasing from 4,014 million US dollars in late 2020 to 25,484 million US dollars projected in 2025. While the growth is consistent, a decrease is observed in 2024, where operating income drops to 13,463 million before rising sharply the following year. This fluctuation suggests a period of lower profitability or increased costs during that year, followed by strong recovery.
- Net Revenue
- Net revenue demonstrates steady and significant growth throughout the period. Revenue rises from 23,888 million US dollars in 2020 to an estimated 63,887 million US dollars by 2025. The most substantial leap occurs between 2023 and 2024, with revenue increasing from 35,819 million to 51,574 million US dollars, indicating either expansion in sales volume, product offerings, or market reach.
- Operating Profit Margin
- The operating profit margin exhibits considerable variability. It increases markedly from 16.8% in 2020 to a peak of 45.25% in 2023, indicating enhanced operational efficiency or favorable cost structure during this period. However, there is a significant decline to 26.1% in 2024, which aligns with the dip in operating income observed in the same year. By 2025, the margin rebounds to 39.89%, suggesting improved profitability though still below the earlier peak.
Overall, the data portrays a company experiencing strong growth in revenue and overall profitability, albeit with some volatility in profit margins and operating income in 2024. The trends may reflect significant business activities or external factors impacting costs and efficiency during that year, followed by recovery and growth momentum in subsequent periods.
Net Profit Margin
Broadcom Inc., net profit margin calculation, comparison to benchmarks
| Nov 2, 2025 | Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 23,126) | 5,895) | 14,082) | 11,495) | 6,736) | 2,960) | |
| Net revenue | 63,887) | 51,574) | 35,819) | 33,203) | 27,450) | 23,888) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 36.20% | 11.43% | 39.31% | 34.62% | 24.54% | 12.39% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 12.51% | 6.36% | 3.77% | 5.59% | 19.24% | — | |
| Analog Devices Inc. | 20.58% | 17.35% | 26.94% | 22.88% | 19.00% | 21.79% | |
| Applied Materials Inc. | 24.67% | 26.41% | 25.86% | 25.31% | 25.53% | 21.04% | |
| Intel Corp. | -0.51% | -35.32% | 3.11% | 12.71% | 25.14% | — | |
| KLA Corp. | 33.41% | 28.15% | 32.27% | 36.06% | 30.04% | 20.96% | |
| Lam Research Corp. | 29.06% | 25.68% | 25.88% | 26.73% | 26.72% | 22.42% | |
| Micron Technology Inc. | 22.84% | 3.10% | -37.54% | 28.24% | 21.16% | 12.54% | |
| NVIDIA Corp. | 55.85% | 48.85% | 16.19% | 36.23% | 25.98% | 25.61% | |
| Qualcomm Inc. | 12.51% | 26.03% | 20.19% | 29.27% | 26.94% | 22.09% | |
| Texas Instruments Inc. | — | 30.68% | 37.16% | 43.68% | 42.35% | 38.69% | |
| Net Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 14.94% | 17.06% | 25.54% | 25.83% | — | |
| Net Profit Margin, Industry | |||||||
| Information Technology | — | 20.64% | 20.33% | 22.35% | 23.54% | — | |
Based on: 10-K (reporting date: 2025-11-02), 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01).
1 2025 Calculation
Net profit margin = 100 × Net income ÷ Net revenue
= 100 × 23,126 ÷ 63,887 = 36.20%
2 Click competitor name to see calculations.
- Net Income
- The net income shows a general upward trend over the analyzed periods, beginning at 2,960 million US dollars and rising sharply to 14,082 million by the fourth period. However, a significant decline to 5,895 million is observed in the fifth period, followed by a substantial rebound to 23,126 million in the final period. This indicates variability in profitability with a notable recovery at the end of the timeframe.
- Net Revenue
- Net revenue demonstrates consistent growth throughout the periods. Starting at 23,888 million US dollars, it increases steadily to 35,819 million by the fourth period. Thereafter, the growth accelerates markedly to 51,574 million and further to 63,887 million in the subsequent periods. This trend reflects strong revenue expansion, particularly in the later years.
- Net Profit Margin
- The net profit margin experiences considerable fluctuation. It rises from 12.39% at the outset to a peak of 39.31% by the fourth period, suggesting improved profitability efficiency during the initial years. The margin then sharply decreases to 11.43% in the fifth period, before recovering to 36.2% in the final period. These variations indicate changing cost structures or expense management impacting overall profitability ratios.
Return on Equity (ROE)
Broadcom Inc., ROE calculation, comparison to benchmarks
| Nov 2, 2025 | Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 23,126) | 5,895) | 14,082) | 11,495) | 6,736) | 2,960) | |
| Stockholders’ equity | 81,292) | 67,678) | 23,988) | 22,709) | 24,962) | 23,874) | |
| Profitability Ratio | |||||||
| ROE1 | 28.45% | 8.71% | 58.70% | 50.62% | 26.99% | 12.40% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 6.88% | 2.85% | 1.53% | 2.41% | 42.18% | — | |
| Analog Devices Inc. | 6.70% | 4.65% | 9.32% | 7.54% | 3.66% | 10.17% | |
| Applied Materials Inc. | 34.28% | 37.77% | 41.94% | 53.51% | 48.08% | 34.21% | |
| Intel Corp. | -0.23% | -18.89% | 1.60% | 7.90% | 20.83% | — | |
| KLA Corp. | 86.56% | 82.00% | 116.01% | 237.04% | 61.53% | 45.65% | |
| Lam Research Corp. | 54.33% | 44.82% | 54.94% | 73.35% | 64.85% | 43.53% | |
| Micron Technology Inc. | 15.76% | 1.72% | -13.22% | 17.41% | 13.34% | 6.89% | |
| NVIDIA Corp. | 91.87% | 69.24% | 19.76% | 36.65% | 25.64% | 22.91% | |
| Qualcomm Inc. | 26.13% | 38.60% | 33.51% | 71.81% | 90.88% | 85.54% | |
| Texas Instruments Inc. | — | 28.39% | 38.53% | 60.02% | 58.27% | 60.90% | |
| ROE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 11.77% | 13.30% | 22.70% | 25.79% | — | |
| ROE, Industry | |||||||
| Information Technology | — | 29.36% | 31.85% | 38.86% | 42.21% | — | |
Based on: 10-K (reporting date: 2025-11-02), 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01).
1 2025 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 23,126 ÷ 81,292 = 28.45%
2 Click competitor name to see calculations.
- Net Income
- The net income experienced a significant upward trajectory from 2,960 million USD in the initial period to a peak of 14,082 million USD by the fourth period. However, there was a sharp decline in the fifth period to 5,895 million USD, followed by a substantial rebound to 23,126 million USD in the most recent period. This indicates volatility in earnings with strong recovery potential.
- Stockholders’ Equity
- Stockholders’ equity showed relative stability in the first four periods, fluctuating slightly between 22,709 million USD and 24,962 million USD. A remarkable escalation occurred in the fifth period, surpassing 67,000 million USD, and continued growing to 81,292 million USD in the last period, suggesting significant equity injections or retained earnings accumulation during recent years.
- Return on Equity (ROE)
- ROE exhibited a robust increase from 12.4% initially to a high of 58.7% in the fourth period, reflecting enhanced profitability and efficient use of equity capital. However, this was followed by a steep decline to 8.71% in the fifth period, which aligns with the dip in net income, before recovering to 28.45% in the final period. These fluctuations suggest variable profitability dynamics likely influenced by changes in net income and equity levels.
Return on Assets (ROA)
Broadcom Inc., ROA calculation, comparison to benchmarks
| Nov 2, 2025 | Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income | 23,126) | 5,895) | 14,082) | 11,495) | 6,736) | 2,960) | |
| Total assets | 171,092) | 165,645) | 72,861) | 73,249) | 75,570) | 75,933) | |
| Profitability Ratio | |||||||
| ROA1 | 13.52% | 3.56% | 19.33% | 15.69% | 8.91% | 3.90% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 5.64% | 2.37% | 1.26% | 1.95% | 25.46% | — | |
| Analog Devices Inc. | 4.72% | 3.39% | 6.79% | 5.46% | 2.66% | 5.69% | |
| Applied Materials Inc. | 19.28% | 20.86% | 22.31% | 24.41% | 22.80% | 16.19% | |
| Intel Corp. | -0.13% | -9.55% | 0.88% | 4.40% | 11.80% | — | |
| KLA Corp. | 25.28% | 17.90% | 24.07% | 26.37% | 20.23% | 13.11% | |
| Lam Research Corp. | 25.10% | 20.42% | 24.02% | 26.78% | 24.59% | 15.47% | |
| Micron Technology Inc. | 10.31% | 1.12% | -9.08% | 13.11% | 9.96% | 5.01% | |
| NVIDIA Corp. | 65.30% | 45.28% | 10.61% | 22.07% | 15.05% | 16.15% | |
| Qualcomm Inc. | 11.05% | 18.39% | 14.17% | 26.39% | 21.93% | 14.60% | |
| Texas Instruments Inc. | — | 13.51% | 20.12% | 32.16% | 31.48% | 28.91% | |
| ROA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 6.42% | 7.41% | 12.68% | 13.62% | — | |
| ROA, Industry | |||||||
| Information Technology | — | 11.95% | 12.47% | 14.49% | 14.60% | — | |
Based on: 10-K (reporting date: 2025-11-02), 10-K (reporting date: 2024-11-03), 10-K (reporting date: 2023-10-29), 10-K (reporting date: 2022-10-30), 10-K (reporting date: 2021-10-31), 10-K (reporting date: 2020-11-01).
1 2025 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 23,126 ÷ 171,092 = 13.52%
2 Click competitor name to see calculations.
- Net Income
- The net income showed a significant upward trend from 2020 to 2023, increasing from 2,960 million US dollars to a peak of 14,082 million US dollars. However, in 2024, there was a substantial decline to 5,895 million US dollars, followed by a strong recovery and a new peak at 23,126 million US dollars in 2025.
- Total Assets
- Total assets remained relatively stable from 2020 to 2023, fluctuating slightly around the range of 72,000 to 76,000 million US dollars. A notable increase occurred in 2024, more than doubling to 165,645 million US dollars, and continued to rise modestly to 171,092 million US dollars in 2025.
- Return on Assets (ROA)
- The return on assets experienced a general upward trend from 3.9% in 2020 to a high of 19.33% in 2023, indicating improved efficiency in asset utilization during this period. In 2024, ROA dropped sharply to 3.56%, mirroring the decrease in net income and the surge in total assets. By 2025, ROA recovered significantly to 13.52%, though it did not reach the previous peak levels.