Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
Return on Invested Capital (ROIC)
Broadcom Inc., ROIC calculation, comparison to benchmarks
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 11,075) | 14,440) | 12,892) | 7,124) | 3,161) | 3,003) | |
| Invested capital2 | 140,990) | 62,670) | 62,111) | 64,649) | 65,921) | 60,032) | |
| Performance Ratio | |||||||
| ROIC3 | 7.86% | 23.04% | 20.76% | 11.02% | 4.80% | 5.00% | |
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Advanced Micro Devices Inc. | — | -0.35% | -0.24% | 56.77% | 30.47% | 12.00% | |
| Analog Devices Inc. | 3.09% | 7.11% | 5.76% | 2.37% | 6.95% | 8.23% | |
| Applied Materials Inc. | 28.75% | 36.75% | 46.34% | 41.96% | 29.68% | 28.97% | |
| Intel Corp. | — | -1.60% | 4.14% | 22.03% | 28.01% | 26.78% | |
| KLA Corp. | 36.99% | 40.63% | 42.51% | 31.64% | 19.88% | 20.98% | |
| Lam Research Corp. | 21.94% | 27.10% | 41.68% | 37.13% | 20.36% | 16.31% | |
| Micron Technology Inc. | 1.61% | -11.01% | 17.20% | 12.88% | 6.84% | 17.15% | |
| Monolithic Power Systems Inc. | — | 27.75% | 33.83% | 36.35% | 25.23% | 21.54% | |
| NVIDIA Corp. | 89.32% | 10.91% | 53.12% | 33.44% | 19.63% | 80.01% | |
| Qualcomm Inc. | 26.75% | 18.69% | 45.12% | 42.56% | 27.48% | 28.27% | |
| Texas Instruments Inc. | — | 28.83% | 49.74% | 48.28% | 43.48% | 43.15% | |
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 11,075 ÷ 140,990 = 7.86%
4 Click competitor name to see calculations.
| Performance ratio | Description | The company |
|---|---|---|
| ROIC | A measure of the periodic, after tax, cash-on-cash yield earned in the business. | Broadcom Inc. ROIC improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Decomposition of ROIC
Broadcom Inc., decomposition of ROIC
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
The primary reason for the decrease in return on invested capital (ROIC) over 2024 year is the decrease in profitability measured by operating profit margin (OPM) ratio.
Operating Profit Margin (OPM)
Broadcom Inc., OPM calculation, comparison to benchmarks
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 11,075) | 14,440) | 12,892) | 7,124) | 3,161) | 3,003) | |
| Add: Cash operating taxes2 | 2,534) | 1,745) | 1,367) | 1,402) | 925) | 534) | |
| Net operating profit before taxes (NOPBT) | 13,609) | 16,185) | 14,259) | 8,526) | 4,086) | 3,537) | |
| Net revenue | 51,574) | 35,819) | 33,203) | 27,450) | 23,888) | 22,597) | |
| Profitability Ratio | |||||||
| OPM3 | 26.39% | 45.19% | 42.94% | 31.06% | 17.10% | 15.65% | |
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Advanced Micro Devices Inc. | — | 2.02% | 5.31% | 22.70% | 13.87% | 6.93% | |
| Analog Devices Inc. | 20.23% | 32.00% | 27.59% | 20.52% | 26.98% | 29.60% | |
| Applied Materials Inc. | 29.32% | 29.22% | 30.32% | 30.54% | 25.67% | 23.94% | |
| Intel Corp. | — | -0.86% | 13.58% | 28.05% | 32.68% | 33.46% | |
| KLA Corp. | 37.54% | 39.78% | 41.73% | 36.39% | 26.09% | 32.80% | |
| Lam Research Corp. | 27.18% | 28.38% | 35.59% | 34.25% | 27.26% | 20.46% | |
| Micron Technology Inc. | 5.12% | -36.77% | 31.50% | 23.15% | 14.37% | 29.89% | |
| Monolithic Power Systems Inc. | — | 26.12% | 28.64% | 22.75% | 19.51% | 16.32% | |
| NVIDIA Corp. | 55.52% | 15.97% | 37.99% | 28.45% | 26.65% | 33.15% | |
| Qualcomm Inc. | 26.67% | 21.48% | 35.06% | 30.10% | 24.17% | 29.86% | |
| Texas Instruments Inc. | — | 44.51% | 51.22% | 49.60% | 43.13% | 40.81% | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
OPM = 100 × NOPBT ÷ Net revenue
= 100 × 13,609 ÷ 51,574 = 26.39%
4 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| OPM | The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. | Broadcom Inc. OPM improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Turnover of Capital (TO)
Broadcom Inc., TO calculation, comparison to benchmarks
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net revenue | 51,574) | 35,819) | 33,203) | 27,450) | 23,888) | 22,597) | |
| Invested capital1 | 140,990) | 62,670) | 62,111) | 64,649) | 65,921) | 60,032) | |
| Efficiency Ratio | |||||||
| TO2 | 0.37 | 0.57 | 0.53 | 0.42 | 0.36 | 0.38 | |
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Advanced Micro Devices Inc. | — | 0.39 | 0.40 | 2.65 | 2.24 | 1.98 | |
| Analog Devices Inc. | 0.22 | 0.28 | 0.27 | 0.16 | 0.31 | 0.33 | |
| Applied Materials Inc. | 1.23 | 1.49 | 1.73 | 1.57 | 1.31 | 1.44 | |
| Intel Corp. | — | 0.59 | 0.71 | 0.89 | 0.95 | 0.89 | |
| KLA Corp. | 1.17 | 1.26 | 1.18 | 1.01 | 0.89 | 0.72 | |
| Lam Research Corp. | 0.99 | 1.14 | 1.35 | 1.24 | 0.86 | 0.93 | |
| Micron Technology Inc. | 0.47 | 0.29 | 0.58 | 0.60 | 0.51 | 0.60 | |
| Monolithic Power Systems Inc. | — | 1.23 | 1.46 | 1.77 | 1.33 | 1.36 | |
| NVIDIA Corp. | 1.98 | 1.26 | 1.49 | 1.28 | 0.77 | 2.45 | |
| Qualcomm Inc. | 1.26 | 1.14 | 1.50 | 1.66 | 1.33 | 1.13 | |
| Texas Instruments Inc. | — | 0.78 | 1.14 | 1.12 | 1.12 | 1.19 | |
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).
1 Invested capital. See details »
2 2024 Calculation
TO = Net revenue ÷ Invested capital
= 51,574 ÷ 140,990 = 0.37
3 Click competitor name to see calculations.
| Efficiency ratio | Description | The company |
|---|---|---|
| TO | The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. | Broadcom Inc. TO improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024. |
Effective Cash Tax Rate (CTR)
Broadcom Inc., CTR calculation, comparison to benchmarks
| Nov 3, 2024 | Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | 11,075) | 14,440) | 12,892) | 7,124) | 3,161) | 3,003) | |
| Add: Cash operating taxes2 | 2,534) | 1,745) | 1,367) | 1,402) | 925) | 534) | |
| Net operating profit before taxes (NOPBT) | 13,609) | 16,185) | 14,259) | 8,526) | 4,086) | 3,537) | |
| Tax Rate | |||||||
| CTR3 | 18.62% | 10.78% | 9.59% | 16.44% | 22.63% | 15.10% | |
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Advanced Micro Devices Inc. | — | 143.92% | 111.01% | 5.73% | 1.76% | 12.31% | |
| Analog Devices Inc. | 29.57% | 20.23% | 21.73% | 25.70% | 16.31% | 14.82% | |
| Applied Materials Inc. | 20.15% | 15.68% | 11.76% | 12.33% | 12.01% | 16.10% | |
| Intel Corp. | — | — | 57.13% | 12.07% | 9.78% | 10.35% | |
| KLA Corp. | 15.45% | 18.86% | 13.88% | 14.30% | 14.62% | 10.70% | |
| Lam Research Corp. | 18.07% | 16.15% | 13.55% | 12.57% | 13.09% | 14.26% | |
| Micron Technology Inc. | 33.29% | — | 6.38% | 6.96% | 6.13% | 4.94% | |
| Monolithic Power Systems Inc. | — | 13.92% | 18.92% | 9.60% | 2.72% | 3.20% | |
| NVIDIA Corp. | 18.77% | 45.94% | 6.28% | 8.10% | 4.59% | 1.47% | |
| Qualcomm Inc. | 20.47% | 23.51% | 14.27% | 14.84% | 14.19% | 16.37% | |
| Texas Instruments Inc. | — | 16.49% | 14.83% | 12.93% | 9.63% | 11.38% | |
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 2,534 ÷ 13,609 = 18.62%
4 Click competitor name to see calculations.
| Tax rate | Description | The company |
|---|---|---|
| CTR | Effective cash tax rate on operating income. | Broadcom Inc. CTR increased from 2022 to 2023 and from 2023 to 2024. |