Broadcom Inc. (NASDAQ:AVGO) 

Total Asset Turnover

The total asset turnover ratio experienced an increasing trend from 0.31 in 2020 to 0.49 in 2023, indicating improved efficiency in using assets to generate sales during this period. However, there was a noticeable decline to 0.31 in 2024, followed by a partial recovery to 0.37 in 2025.

Current Ratio

The current ratio showed growth from 1.87 in 2020 to a peak of 2.82 in 2023, suggesting enhanced short-term liquidity. This was succeeded by a sharp reduction to 1.17 in 2024 and a modest increase to 1.71 in 2025, reflecting some fluctuations in the company's ability to cover short-term obligations.

Debt to Equity Ratio

This ratio trended downward over the analyzed period. Starting at 1.72 in 2020, it showed a temporary increase in 2022, but thereafter decreased steadily to 1.00 in 2024 and further to 0.80 in 2025. This pattern suggests a gradual reduction in financial leverage and reliance on equity financing in recent years.

Debt to Capital Ratio

Debt to capital remained relatively stable with slight fluctuations between 0.61 and 0.64 from 2020 to 2023. A significant decline was observed starting in 2024, dropping to 0.50 and further to 0.44 by 2025. This indicates a reduction in the proportion of debt within the company’s capital structure.

Financial Leverage

Financial leverage ratios showed a gradual decline from approximately 3.18 in 2020 to 2.10 in 2025, reflecting a diminishing dependence on borrowed funds to finance assets over the years.

Net Profit Margin

Net profit margin displayed considerable volatility. It improved substantially from 12.39% in 2020 to a peak above 39% in 2023, evidencing greater profitability. However, a sharp decrease to approximately 11-16% was noted in 2024, with a rebound to over 32-36% by 2025, indicating fluctuations in profit efficiency.

Return on Equity (ROE)

The ROE exhibited significant growth from around 12% in 2020 to nearly 59% in 2023, denoting increased effectiveness in generating shareholder returns. This was followed by a sharp decline to under 12% in 2024, then an improvement to about 25-28% in 2025. Such variability may indicate changes in profitability or capital structure impacting equity returns.

Return on Assets (ROA)

ROA followed an upward trajectory from roughly 3.9% in 2020 to about 19% in 2023, indicative of rising overall asset profitability. The ratio dropped sharply in 2024 to between 3.5% and 5.0%, but partially recovered to approximately 12-13.5% in 2025. This trend aligns with observed fluctuations in profit margins and asset utilization.

Net Revenue

The net revenue demonstrates a consistent upward trend across the periods analyzed. Beginning at $23,888 million in 2020, revenues increased steadily each year with notable acceleration between 2023 and 2024, reaching $51,574 million, and further rising to $63,887 million in 2025. This reflects significant growth in the company's sales performance over the six-year period.

Total Assets

Total assets remained relatively stable from 2020 through 2023, fluctuating slightly around the $73,000 million mark. However, a remarkable increase occurred in 2024, with assets more than doubling to approximately $165,645 million, and then showing a modest rise to $171,092 million in 2025. This considerable expansion in asset base suggests major investments, acquisitions, or asset revaluations taking place in 2024.

Reported and Adjusted Total Asset Turnover

The reported and adjusted total asset turnover ratios follow a similar trajectory, starting at a low 0.31 in 2020 and rising steadily to 0.49 by 2023, indicating improving efficiency in using assets to generate revenue during this period. However, in 2024, there is a sharp decline back to 0.31, likely influenced by the significant increase in total assets outpacing revenue growth. The ratio recovers slightly to 0.37 in 2025 but remains below the pre-2024 peak. This pattern suggests that the asset base expansion temporarily reduced asset utilization effectiveness.

Overall Insights

The data reveals that despite robust revenue growth, the asset turnover ratio's decline in the latter periods points to potential inefficiencies or transition phases in asset utilization following rapid asset growth. Continued monitoring of asset productivity is advisable to ensure that the expanded asset base contributes effectively to revenue generation and overall operational efficiency.

Current assets

Current assets have shown an overall upward trend over the observed periods, increasing from $11,895 million in 2020 to $31,573 million in 2025. This indicates an accumulation of short-term assets available within the company, with some fluctuations observed, such as a slight decrease from 2024 to 2025.

Current liabilities

Current liabilities have also increased notably, from $6,371 million in 2020 to $18,514 million in 2025. There was a significant jump in liabilities recorded between 2023 and 2024, where values more than doubled, suggesting a potential increase in short-term obligations or changes in financial strategy.

Reported current ratio

The reported current ratio illustrates fluctuating liquidity ratios across the years. The ratio improved from 1.87 in 2020 to a peak of 2.82 in 2023, indicating enhanced ability to cover short-term liabilities with current assets. However, there was a steep decline to 1.17 in 2024, followed by some recovery to 1.71 in 2025. Despite the volatility, the ratio remained above 1 in all years, signifying that current assets consistently exceeded current liabilities.

Adjusted current assets and adjusted current ratio

The adjusted current assets closely mirror the current assets figures, reflecting minimal adjustments. Consequently, the adjusted current ratio values are identical to the reported ones, confirming the reliability of the reported liquidity position without significant adjustments affecting the analysis.

The financial data reveals several notable trends concerning the company's capital structure and leverage over the analyzed periods.

Total debt and adjusted total debt

Total debt remained relatively stable from 2020 through 2023, with slight decreases from US$41,062 million in 2020 to US$39,229 million in 2023. However, there was a significant increase observed in 2024, rising sharply to US$67,566 million, followed by a modest decline in 2025 to US$65,136 million. The adjusted total debt figures followed a similar pattern, confirming the overall trend in debt levels.

Stockholders' equity and adjusted stockholders’ equity

Stockholders’ equity exhibited minor fluctuations between 2020 and 2023, decreasing from US$23,874 million in 2020 to US$22,709 million in 2022, then increasing to US$23,988 million in 2023. From 2024 onwards, equity surged markedly, reaching US$67,678 million in 2024 and further climbing to US$81,292 million in 2025. Adjusted stockholders’ equity values mirrored this upward trend, indicating growth in the company’s net assets during the latter periods.

Debt to equity ratios (reported and adjusted)

The reported debt to equity ratio showed a downward trend over the entire period. Starting from 1.72 in 2020, it decreased to 1.64 in 2023, then dropped more substantially to 1.0 in 2024 and ended at 0.8 in 2025. The adjusted debt to equity ratio followed a similar pattern, declining from 1.72 in 2020 to 1.7 in 2023, then falling to 0.95 in 2024 and 0.79 in 2025.

This analysis suggests that while the company maintained relatively stable debt levels in the early years, it undertook a significant increase in debt in 2024, coinciding with a substantial rise in equity. Consequently, leverage ratios improved, indicating a stronger equity base relative to debt by 2025. This improved capital structure could reflect strategic initiatives funded by both debt and equity enhancments, potentially aiming to strengthen financial stability or support growth objectives.

The financial data indicates various trends in the company's debt and capital structure over the examined periods.

Total Debt

The total debt remained relatively stable from November 2020 through October 2023, fluctuating slightly between approximately 39,000 and 41,000 million US dollars. However, there was a significant increase starting November 2024, peaking above 67,000 million US dollars, followed by a decrease to about 65,000 million US dollars by November 2025.

Total Capital

Total capital showed minor variations initially, with a slight decline from about 65,000 million US dollars down to around 62,000 million US dollars by October 2022. From October 2023 onward, there was a marked and continuous increase in total capital, reaching approximately 146,000 million US dollars by November 2025, more than doubling compared to the earlier periods.

Reported Debt to Capital Ratio

This ratio remained relatively consistent at around 0.61 to 0.64 through 2020 to 2023, indicating a stable proportion of debt relative to capital. Starting November 2024, the ratio significantly declined, reaching 0.50 and further decreasing to 0.44 by November 2025, suggesting an improvement in the company's capital structure with reduced relative debt levels.

Adjusted Total Debt

Adjusted total debt exhibited a mirroring pattern to the reported total debt, remaining steady near 40,000 million US dollars in the early periods, then rising sharply in November 2024 to nearly 69,000 million US dollars, before reducing slightly to approximately 66,000 million US dollars by November 2025.

Adjusted Total Capital

The adjusted total capital was stable in the early periods, similar to total capital, with values near 62,000 to 66,000 million US dollars. It then increased significantly to over 141,000 million US dollars in November 2024 and continued to rise to about 150,000 million US dollars by November 2025, reflecting substantial capital growth.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio closely tracked the reported ratio trends, sustaining around 0.62 to 0.64 in the initial periods, then markedly declining to 0.49 in November 2024 and 0.44 in November 2025, reinforcing the indication of a strengthening capital base relative to debt levels.

Overall, the company’s financial structure reveals stability in debt levels and capital in the first four years, followed by significant capital expansion and a controlled increase in debt. Consequently, the proportion of debt to capital improved substantially in the most recent periods, indicating a potentially enhanced financial leverage position and reduced credit risk.

The financial data over the examined periods reveal significant shifts in the company's asset base and equity position, accompanied by notable changes in financial leverage ratios.

Total Assets

The total assets remained relatively stable from 2020 through 2023, fluctuating slightly between approximately $72.8 billion and $75.9 billion. However, there is a pronounced increase starting in 2024, where total assets more than doubled to about $165.6 billion, and further increased slightly to $171.1 billion in 2025. This indicates a substantial expansion in the asset base during the most recent periods.

Stockholders' Equity

Stockholders’ equity showed marginal fluctuations between 2020 and 2023, ranging from around $22.7 billion to $24.9 billion. In 2024, equity experienced a dramatic increase to approximately $67.7 billion, followed by a further rise to $81.3 billion in 2025. This increase corresponds with the surge in total assets, suggesting strengthened capitalization or retained earnings accumulation during this period.

Reported Financial Leverage

The reported financial leverage ratio remained relatively steady between 2020 and 2023, ranging from about 3.0 to 3.2. Starting in 2024, the leverage ratio decreased significantly to 2.45 and further declined to 2.1 in 2025. This trend signals a reduction in the use of debt relative to equity, implying a lower financial risk profile or a shift towards a more equity-based capital structure.

Adjusted Total Assets and Equity

The adjusted total assets and equity closely mirror the reported figures, confirming the stability of the financial data and adjustments made for accounting considerations. The adjusted total assets follow the same trend of stability up to 2023, followed by a leap in the last two periods. Adjusted stockholders’ equity also reflects the substantial increase noted in recent years, rising sharply in 2024 and 2025.

Adjusted Financial Leverage

The adjusted financial leverage ratio aligns closely with the reported leverage trends, showing ratios near 3.1 through 2023, then decreasing significantly to approximately 2.29 in 2024 and 2.04 in 2025. This reinforces the observation of reduced leverage and a corresponding shift in capital structure during the latest two periods.

Overall, the data indicate a period of relative stability in asset size and equity during the initial years, followed by transformative growth in both total assets and equity starting in 2024. Concurrently, the company appears to adopt a less leveraged financial strategy, reflecting a likely emphasis on strengthening the balance sheet and reducing financial risk in recent years.

Net Income

The net income experienced significant variation over the periods. Beginning at 2,960 million USD, it rose sharply to 6,736 million USD in the following year and continued an upward trajectory, peaking at 14,082 million USD by the fiscal year ending in 2023. A notable decline occurred in 2024, with net income dropping to 5,895 million USD, followed by a strong rebound to 23,126 million USD in 2025, the highest value recorded in the examined timeframe.

Net Revenue

Net revenue displayed consistent growth throughout the years under consideration. Starting at 23,888 million USD, it increased steadily each year, reaching 35,819 million USD by 2023. A substantial jump was observed in 2024, with revenue increasing to 51,574 million USD, followed by a further rise to 63,887 million USD in 2025, indicative of robust top-line expansion.

Reported Net Profit Margin

Reported net profit margin showed considerable fluctuation. It began at 12.39% and more than doubled to 24.54% by 2021. The margin improved significantly in subsequent years, peaking at 39.31% in 2023. However, a sharp decline to 11.43% occurred in 2024, paralleling the drop in net income, before recovering to 36.2% in 2025.

Adjusted Net Income

Adjusted net income followed a pattern similar to reported net income, beginning at 1,819 million USD and increasing substantially to 5,675 million USD in 2021. It rose further to 13,841 million USD by 2023. In contrast to the reported net income, the adjusted figure decreased less drastically in 2024, registering 8,257 million USD, and then increased again to 21,053 million USD in 2025.

Adjusted Net Profit Margin

The adjusted net profit margin generally trended upward, starting at 7.61% in 2020 and improving consistently to 38.64% in 2023. The margin declined to 16.01% in 2024, which, while significant, was not as pronounced as the decline seen in the reported net profit margin. The margin recovered to 32.95% in 2025. This pattern suggests adjustments have somewhat mitigated the year-to-year margin volatility.

Summary of Trends

The financial data depict a company with strong revenue growth and generally improving profitability margins over several years. Both net income and adjusted net income increased markedly through 2023, followed by a downturn in 2024, which affected profitability margins substantially. The rebound in 2025 points to a recovery phase, with both income and margins approaching or exceeding previous highs. The widening gap between reported and adjusted figures in some years highlights the impact of one-time or non-recurring items affecting profitability assessments. Overall, the data reflect volatility but an underlying trend of expanding scale and resilient profitability.

Net Income Trend

The net income exhibited substantial growth from 2020 through 2023, rising from 2,960 million USD to 14,082 million USD. However, in 2024, there was a notable decline to 5,895 million USD, followed by a significant rebound to 23,126 million USD in 2025.

Stockholders’ Equity Trend

Stockholders’ equity remained relatively stable between 2020 and 2023, fluctuating around the 23,000 to 25,000 million USD range. Starting in 2024, it showed a considerable increase, reaching 67,678 million USD, and continued to rise to 81,292 million USD by 2025.

Reported Return on Equity (ROE) Pattern

The reported ROE increased sharply from 12.4% in 2020 to a peak of 58.7% in 2023. In 2024, it declined to 8.71% but then rebounded to 28.45% in 2025. This pattern indicates fluctuations in profitability relative to shareholder equity over the period.

Adjusted Net Income Behavior

Adjusted net income followed trends similar to the reported net income, rising steadily from 1,819 million USD in 2020 to 13,841 million USD in 2023, dipping to 8,257 million USD in 2024, and increasing again to 21,053 million USD in 2025.

Adjusted Stockholders’ Equity Dynamics

Adjusted stockholders’ equity also remained stable between 2020 and 2023, ranging near 22,000 to 24,000 million USD. It then experienced a dramatic increase in 2024 and 2025, reaching 72,349 million USD and 83,882 million USD respectively.

Adjusted Return on Equity (ROE) Insights

The adjusted ROE rose sharply from 7.5% in 2020, peaking at 59.41% in 2023, followed by a notable decline to 11.41% in 2024, and an increase to 25.1% in 2025. This indicates similar profitability trends when excluding certain adjustments or one-time items.

Overall Analysis

The data demonstrates strong growth in profitability and equity through 2023, with a marked peak in returns on equity. The sharp decline in profitability indicators in 2024, despite increased equity, suggests a period of reduced efficiency or one-time impacts. The partial recovery in 2025 indicates an improving financial performance. The increasing equity balances from 2024 onwards may reflect equity issuance, asset growth, or other equity financing activities contributing to the company’s expanded base.

Net Income

Net income exhibited significant fluctuations over the examined periods. After an initial rise from 2,960 million USD to 14,082 million USD within the first four years, a sharp decline to 5,895 million USD was observed in the fifth year. This was followed by a substantial increase to 23,126 million USD in the final period, reflecting considerable volatility in profitability.

Total Assets

Total assets remained relatively stable around 73,000 million USD during the first four years before more than doubling to approximately 165,645 million USD in the fifth year. The asset base then further increased moderately to 171,092 million USD in the last year, indicating a major expansion in asset investments or acquisitions occurring between the fourth and fifth periods.

Reported Return on Assets (ROA)

The reported ROA followed a pattern that initially improved steadily, rising from 3.9% to a peak of 19.33% by the fourth year. However, this was followed by a steep drop to 3.56% in the fifth year, before rebounding to 13.52% in the final period. This trend mirrors the fluctuation in net income relative to asset levels, highlighting the impact of profitability changes amidst significant asset growth.

Adjusted Net Income

The adjusted net income reinforced the trend seen in reported net income, with a steady rise from 1,819 million USD to a peak of 13,841 million USD in the fourth year. A decrease to 8,257 million USD occurred in the fifth year, succeeded by a strong recovery to 21,053 million USD in the last year. This adjusted metric suggests that one-time or non-operational items influenced the raw net income figures but did not alter the overall volatility observed.

Adjusted Total Assets

Adjusted total assets tracked closely with the total assets, confirming consistent asset valuation adjustments. Stability was noted in the initial four years near 73,000 million USD, followed by a substantial increase to 165,656 million USD in the fifth year and a slight growth to 171,095 million USD by the end of the period. This consistency indicates transparency in asset reporting despite the large asset base expansion.

Adjusted Return on Assets (ROA)

Adjusted ROA showed a similar trajectory to the reported ROA, gradually increasing from 2.39% to nearly 19% by the fourth year. It then declined to 4.98% in the fifth year before improving again to 12.3% in the final year. This pattern suggests that operational performance improved markedly until the fourth period, was temporarily challenged during the fifth period, and began recovering thereafter.