Goodwill and Intangible Asset Disclosure
Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Broadcom Inc., balance sheet: goodwill and intangible assets

US$ in millions

	Nov 3, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019
Goodwill	97,873)	43,653)	43,614)	43,450)	43,447)	36,714)
Purchased technology	35,467)	12,938)	19,450)	23,932)	24,119)	20,935)
Customer contracts and related relationships	16,186)	7,059)	7,066)	8,356)	8,389)	5,978)
Trade names	1,720)	649)	700)	787)	797)	712)
Other	166)	177)	658)	2,818)	2,831)	2,810)
Intangible assets subject to amortization, gross carrying amount	53,539)	20,823)	27,874)	35,893)	36,136)	30,435)
Accumulated amortization	(15,296)	(16,966)	(20,792)	(24,546)	(19,379)	(13,144)
Intangible assets subject to amortization, net book value	38,243)	3,857)	7,082)	11,347)	16,757)	17,291)
IPR&D	2,340)	10)	29)	27)	25)	263)
Intangible assets	40,583)	3,867)	7,111)	11,374)	16,782)	17,554)
Goodwill and intangible assets	138,456)	47,520)	50,725)	54,824)	60,229)	54,268)

Based on: 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), 10-K (reporting date: 2019-11-03).

Download chart

Item	Description	The company
Goodwill	Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.	Broadcom Inc. goodwill increased from 2022 to 2023 and from 2023 to 2024.
Intangible assets	Sum of the carrying amounts of all intangible assets, excluding goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Broadcom Inc. intangible assets decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Goodwill and intangible assets	Sum of the carrying amounts of all intangible assets, including goodwill, as of the balance sheet date, net of accumulated amortization and impairment charges.	Broadcom Inc. goodwill and intangible assets decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Broadcom Inc., adjustments to financial statements

US$ in millions

	Nov 3, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019
Adjustment to Total Assets
Total assets (as reported)	165,645)	72,861)	73,249)	75,570)	75,933)	67,493)
Less: Goodwill	97,873)	43,653)	43,614)	43,450)	43,447)	36,714)
Total assets (adjusted)	67,772)	29,208)	29,635)	32,120)	32,486)	30,779)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	67,678)	23,988)	22,709)	24,962)	23,874)	24,941)
Less: Goodwill	97,873)	43,653)	43,614)	43,450)	43,447)	36,714)
Stockholders’ equity (adjusted)	(30,195)	(19,665)	(20,905)	(18,488)	(19,573)	(11,773)

Based on: 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), 10-K (reporting date: 2019-11-03).

Broadcom Inc., Financial Data: Reported vs. Adjusted

Download chart

Broadcom Inc., adjusted financial ratios

	Nov 3, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019
Total Asset Turnover
Reported total asset turnover	0.31	0.49	0.45	0.36	0.31	0.33
Adjusted total asset turnover	0.76	1.23	1.12	0.85	0.74	0.73
Financial Leverage
Reported financial leverage	2.45	3.04	3.23	3.03	3.18	2.71
Adjusted financial leverage	—	—	—	—	—	—
Return on Equity (ROE)
Reported ROE	8.71%	58.70%	50.62%	26.99%	12.40%	10.92%
Adjusted ROE	—	—	—	—	—	—
Return on Assets (ROA)
Reported ROA	3.56%	19.33%	15.69%	8.91%	3.90%	4.04%
Adjusted ROA	8.70%	48.21%	38.79%	20.97%	9.11%	8.85%

Based on: 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), 10-K (reporting date: 2019-11-03).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Broadcom Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Broadcom Inc. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Broadcom Inc., Financial Ratios: Reported vs. Adjusted

Download chart

	Nov 3, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019
As Reported
Selected Financial Data (US$ in millions)
Net revenue	51,574)	35,819)	33,203)	27,450)	23,888)	22,597)
Total assets	165,645)	72,861)	73,249)	75,570)	75,933)	67,493)
Activity Ratio
Total asset turnover¹	0.31	0.49	0.45	0.36	0.31	0.33
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net revenue	51,574)	35,819)	33,203)	27,450)	23,888)	22,597)
Adjusted total assets	67,772)	29,208)	29,635)	32,120)	32,486)	30,779)
Activity Ratio
Adjusted total asset turnover²	0.76	1.23	1.12	0.85	0.74	0.73

Based on: 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), 10-K (reporting date: 2019-11-03).

2024 Calculations

¹ Total asset turnover = Net revenue ÷ Total assets
= 51,574 ÷ 165,645 = 0.31

² Adjusted total asset turnover = Net revenue ÷ Adjusted total assets
= 51,574 ÷ 67,772 = 0.76

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Broadcom Inc. adjusted total asset turnover ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Nov 3, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019
As Reported
Selected Financial Data (US$ in millions)
Total assets	165,645)	72,861)	73,249)	75,570)	75,933)	67,493)
Stockholders’ equity	67,678)	23,988)	22,709)	24,962)	23,874)	24,941)
Solvency Ratio
Financial leverage¹	2.45	3.04	3.23	3.03	3.18	2.71
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Adjusted total assets	67,772)	29,208)	29,635)	32,120)	32,486)	30,779)
Adjusted stockholders’ equity	(30,195)	(19,665)	(20,905)	(18,488)	(19,573)	(11,773)
Solvency Ratio
Adjusted financial leverage²	—	—	—	—	—	—

Based on: 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), 10-K (reporting date: 2019-11-03).

2024 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 165,645 ÷ 67,678 = 2.45

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 67,772 ÷ -30,195 = —

Download chart

	Nov 3, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	5,895)	14,082)	11,495)	6,736)	2,960)	2,724)
Stockholders’ equity	67,678)	23,988)	22,709)	24,962)	23,874)	24,941)
Profitability Ratio
ROE¹	8.71%	58.70%	50.62%	26.99%	12.40%	10.92%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	5,895)	14,082)	11,495)	6,736)	2,960)	2,724)
Adjusted stockholders’ equity	(30,195)	(19,665)	(20,905)	(18,488)	(19,573)	(11,773)
Profitability Ratio
Adjusted ROE²	—	—	—	—	—	—

Based on: 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), 10-K (reporting date: 2019-11-03).

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 5,895 ÷ 67,678 = 8.71%

² Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 5,895 ÷ -30,195 = —

Download chart

	Nov 3, 2024	Oct 29, 2023	Oct 30, 2022	Oct 31, 2021	Nov 1, 2020	Nov 3, 2019
As Reported
Selected Financial Data (US$ in millions)
Net income	5,895)	14,082)	11,495)	6,736)	2,960)	2,724)
Total assets	165,645)	72,861)	73,249)	75,570)	75,933)	67,493)
Profitability Ratio
ROA¹	3.56%	19.33%	15.69%	8.91%	3.90%	4.04%
Adjusted for Goodwill
Selected Financial Data (US$ in millions)
Net income	5,895)	14,082)	11,495)	6,736)	2,960)	2,724)
Adjusted total assets	67,772)	29,208)	29,635)	32,120)	32,486)	30,779)
Profitability Ratio
Adjusted ROA²	8.70%	48.21%	38.79%	20.97%	9.11%	8.85%

Based on: 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), 10-K (reporting date: 2019-11-03).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 5,895 ÷ 165,645 = 3.56%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 5,895 ÷ 67,772 = 8.70%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Broadcom Inc. adjusted ROA improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Broadcom Inc. (NASDAQ:AVGO)

Analysis of Goodwill and Intangible Assets

Goodwill and Intangible Asset Disclosure

Adjustments to Financial Statements: Removal of Goodwill

Broadcom Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Broadcom Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)