Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Broadcom Inc., solvency ratios
Based on: 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), 10-K (reporting date: 2018-11-04).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Broadcom Inc. debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Broadcom Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Broadcom Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Broadcom Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Broadcom Inc. debt to assets ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Broadcom Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Broadcom Inc. financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Broadcom Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Broadcom Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Debt to Equity
Broadcom Inc., debt to equity calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | Nov 4, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,608) | 440) | 290) | 827) | 2,787) | —) | |
| Long-term debt, excluding current portion | 37,621) | 39,075) | 39,440) | 40,235) | 30,011) | 17,493) | |
| Total debt | 39,229) | 39,515) | 39,730) | 41,062) | 32,798) | 17,493) | |
| Stockholders’ equity | 23,988) | 22,709) | 24,962) | 23,874) | 24,941) | 26,657) | |
| Solvency Ratio | |||||||
| Debt to equity1 | 1.64 | 1.74 | 1.59 | 1.72 | 1.32 | 0.66 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.04 | 0.05 | 0.04 | 0.06 | 0.17 | — | |
| Analog Devices Inc. | 0.20 | 0.18 | 0.18 | 0.43 | 0.47 | 0.58 | |
| Applied Materials Inc. | 0.35 | 0.45 | 0.45 | 0.52 | 0.65 | 0.78 | |
| First Solar Inc. | 0.09 | 0.03 | 0.04 | 0.05 | 0.09 | — | |
| Intel Corp. | 0.47 | 0.41 | 0.40 | 0.45 | 0.37 | — | |
| KLA Corp. | 2.02 | 4.75 | 1.02 | 1.30 | 1.29 | — | |
| Lam Research Corp. | 0.61 | 0.80 | 0.83 | 1.12 | 0.96 | — | |
| Micron Technology Inc. | 0.30 | 0.14 | 0.15 | 0.17 | 0.16 | — | |
| NVIDIA Corp. | 0.50 | 0.41 | 0.41 | 0.16 | 0.21 | — | |
| Qualcomm Inc. | 0.71 | 0.86 | 1.58 | 2.59 | 3.25 | — | |
| Texas Instruments Inc. | 0.66 | 0.60 | 0.58 | 0.74 | 0.65 | — | |
| Debt to Equity, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.46 | 0.43 | 0.49 | 0.61 | 0.56 | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.62 | 0.67 | 0.76 | 0.87 | 0.87 | — | |
Based on: 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), 10-K (reporting date: 2018-11-04).
1 2023 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 39,229 ÷ 23,988 = 1.64
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Broadcom Inc. debt to equity ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Debt to Equity (including Operating Lease Liability)
Broadcom Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | Nov 4, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,608) | 440) | 290) | 827) | 2,787) | —) | |
| Long-term debt, excluding current portion | 37,621) | 39,075) | 39,440) | 40,235) | 30,011) | 17,493) | |
| Total debt | 39,229) | 39,515) | 39,730) | 41,062) | 32,798) | 17,493) | |
| Short-term lease liabilities, operating leases (classified in Other current liabilities) | 60) | 74) | 83) | 100) | —) | —) | |
| Long-term lease liabilities, operating leases (classified in Other long-term liabilities) | 359) | 389) | 460) | 527) | —) | —) | |
| Total debt (including operating lease liability) | 39,648) | 39,978) | 40,273) | 41,689) | 32,798) | 17,493) | |
| Stockholders’ equity | 23,988) | 22,709) | 24,962) | 23,874) | 24,941) | 26,657) | |
| Solvency Ratio | |||||||
| Debt to equity (including operating lease liability)1 | 1.65 | 1.76 | 1.61 | 1.75 | 1.32 | 0.66 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.06 | 0.05 | 0.10 | 0.10 | 0.26 | — | |
| Analog Devices Inc. | 0.21 | 0.19 | 0.19 | 0.46 | 0.47 | 0.58 | |
| Applied Materials Inc. | 0.37 | 0.48 | 0.47 | 0.54 | 0.65 | 0.78 | |
| First Solar Inc. | 0.09 | 0.04 | 0.07 | 0.09 | 0.12 | — | |
| Intel Corp. | 0.47 | 0.42 | 0.40 | 0.46 | 0.38 | — | |
| KLA Corp. | 2.08 | 4.83 | 1.05 | 1.34 | 1.29 | — | |
| Lam Research Corp. | 0.64 | 0.83 | 0.86 | 1.16 | 0.96 | — | |
| Micron Technology Inc. | 0.32 | 0.15 | 0.17 | 0.19 | 0.16 | — | |
| NVIDIA Corp. | 0.54 | 0.44 | 0.46 | 0.22 | 0.21 | — | |
| Qualcomm Inc. | 0.74 | 0.90 | 1.64 | 2.67 | 3.25 | — | |
| Texas Instruments Inc. | 0.70 | 0.63 | 0.62 | 0.77 | 0.69 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.48 | 0.44 | 0.51 | 0.63 | 0.57 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.68 | 0.73 | 0.83 | 0.94 | 0.90 | — | |
Based on: 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), 10-K (reporting date: 2018-11-04).
1 2023 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 39,648 ÷ 23,988 = 1.65
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Broadcom Inc. debt to equity ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Debt to Capital
Broadcom Inc., debt to capital calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | Nov 4, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,608) | 440) | 290) | 827) | 2,787) | —) | |
| Long-term debt, excluding current portion | 37,621) | 39,075) | 39,440) | 40,235) | 30,011) | 17,493) | |
| Total debt | 39,229) | 39,515) | 39,730) | 41,062) | 32,798) | 17,493) | |
| Stockholders’ equity | 23,988) | 22,709) | 24,962) | 23,874) | 24,941) | 26,657) | |
| Total capital | 63,217) | 62,224) | 64,692) | 64,936) | 57,739) | 44,150) | |
| Solvency Ratio | |||||||
| Debt to capital1 | 0.62 | 0.64 | 0.61 | 0.63 | 0.57 | 0.40 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.04 | 0.04 | 0.04 | 0.05 | 0.15 | — | |
| Analog Devices Inc. | 0.16 | 0.15 | 0.15 | 0.30 | 0.32 | 0.37 | |
| Applied Materials Inc. | 0.26 | 0.31 | 0.31 | 0.34 | 0.39 | 0.44 | |
| First Solar Inc. | 0.08 | 0.03 | 0.04 | 0.05 | 0.08 | — | |
| Intel Corp. | 0.32 | 0.29 | 0.29 | 0.31 | 0.27 | — | |
| KLA Corp. | 0.67 | 0.83 | 0.50 | 0.57 | 0.56 | — | |
| Lam Research Corp. | 0.38 | 0.44 | 0.45 | 0.53 | 0.49 | — | |
| Micron Technology Inc. | 0.23 | 0.12 | 0.13 | 0.15 | 0.14 | — | |
| NVIDIA Corp. | 0.33 | 0.29 | 0.29 | 0.14 | 0.18 | — | |
| Qualcomm Inc. | 0.42 | 0.46 | 0.61 | 0.72 | 0.76 | — | |
| Texas Instruments Inc. | 0.40 | 0.37 | 0.37 | 0.43 | 0.39 | — | |
| Debt to Capital, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.32 | 0.30 | 0.33 | 0.38 | 0.36 | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.38 | 0.40 | 0.43 | 0.47 | 0.46 | — | |
Based on: 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), 10-K (reporting date: 2018-11-04).
1 2023 Calculation
Debt to capital = Total debt ÷ Total capital
= 39,229 ÷ 63,217 = 0.62
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Broadcom Inc. debt to capital ratio deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Debt to Capital (including Operating Lease Liability)
Broadcom Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | Nov 4, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,608) | 440) | 290) | 827) | 2,787) | —) | |
| Long-term debt, excluding current portion | 37,621) | 39,075) | 39,440) | 40,235) | 30,011) | 17,493) | |
| Total debt | 39,229) | 39,515) | 39,730) | 41,062) | 32,798) | 17,493) | |
| Short-term lease liabilities, operating leases (classified in Other current liabilities) | 60) | 74) | 83) | 100) | —) | —) | |
| Long-term lease liabilities, operating leases (classified in Other long-term liabilities) | 359) | 389) | 460) | 527) | —) | —) | |
| Total debt (including operating lease liability) | 39,648) | 39,978) | 40,273) | 41,689) | 32,798) | 17,493) | |
| Stockholders’ equity | 23,988) | 22,709) | 24,962) | 23,874) | 24,941) | 26,657) | |
| Total capital (including operating lease liability) | 63,636) | 62,687) | 65,235) | 65,563) | 57,739) | 44,150) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.62 | 0.64 | 0.62 | 0.64 | 0.57 | 0.40 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.05 | 0.05 | 0.09 | 0.09 | 0.20 | — | |
| Analog Devices Inc. | 0.17 | 0.16 | 0.16 | 0.31 | 0.32 | 0.37 | |
| Applied Materials Inc. | 0.27 | 0.32 | 0.32 | 0.35 | 0.39 | 0.44 | |
| First Solar Inc. | 0.09 | 0.04 | 0.06 | 0.08 | 0.10 | — | |
| Intel Corp. | 0.32 | 0.30 | 0.29 | 0.31 | 0.28 | — | |
| KLA Corp. | 0.67 | 0.83 | 0.51 | 0.57 | 0.56 | — | |
| Lam Research Corp. | 0.39 | 0.45 | 0.46 | 0.54 | 0.49 | — | |
| Micron Technology Inc. | 0.24 | 0.13 | 0.14 | 0.16 | 0.14 | — | |
| NVIDIA Corp. | 0.35 | 0.31 | 0.31 | 0.18 | 0.18 | — | |
| Qualcomm Inc. | 0.43 | 0.47 | 0.62 | 0.73 | 0.76 | — | |
| Texas Instruments Inc. | 0.41 | 0.39 | 0.38 | 0.44 | 0.41 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.32 | 0.31 | 0.34 | 0.39 | 0.36 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.41 | 0.42 | 0.45 | 0.49 | 0.47 | — | |
Based on: 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), 10-K (reporting date: 2018-11-04).
1 2023 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 39,648 ÷ 63,636 = 0.62
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Broadcom Inc. debt to capital ratio (including operating lease liability) deteriorated from 2021 to 2022 but then improved from 2022 to 2023 not reaching 2021 level. |
Debt to Assets
Broadcom Inc., debt to assets calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | Nov 4, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,608) | 440) | 290) | 827) | 2,787) | —) | |
| Long-term debt, excluding current portion | 37,621) | 39,075) | 39,440) | 40,235) | 30,011) | 17,493) | |
| Total debt | 39,229) | 39,515) | 39,730) | 41,062) | 32,798) | 17,493) | |
| Total assets | 72,861) | 73,249) | 75,570) | 75,933) | 67,493) | 50,124) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.54 | 0.54 | 0.53 | 0.54 | 0.49 | 0.35 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.04 | 0.04 | 0.03 | 0.04 | 0.08 | — | |
| Analog Devices Inc. | 0.14 | 0.13 | 0.13 | 0.24 | 0.26 | 0.31 | |
| Applied Materials Inc. | 0.18 | 0.20 | 0.21 | 0.24 | 0.28 | 0.30 | |
| First Solar Inc. | 0.06 | 0.02 | 0.03 | 0.04 | 0.06 | — | |
| Intel Corp. | 0.26 | 0.23 | 0.23 | 0.24 | 0.21 | — | |
| KLA Corp. | 0.42 | 0.53 | 0.34 | 0.37 | 0.38 | — | |
| Lam Research Corp. | 0.27 | 0.29 | 0.31 | 0.40 | 0.37 | — | |
| Micron Technology Inc. | 0.21 | 0.10 | 0.12 | 0.12 | 0.12 | — | |
| NVIDIA Corp. | 0.27 | 0.25 | 0.24 | 0.11 | 0.15 | — | |
| Qualcomm Inc. | 0.30 | 0.32 | 0.38 | 0.44 | 0.48 | — | |
| Texas Instruments Inc. | 0.35 | 0.32 | 0.31 | 0.35 | 0.32 | — | |
| Debt to Assets, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.26 | 0.24 | 0.26 | 0.29 | 0.28 | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.26 | 0.26 | 0.28 | 0.30 | 0.30 | — | |
Based on: 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), 10-K (reporting date: 2018-11-04).
1 2023 Calculation
Debt to assets = Total debt ÷ Total assets
= 39,229 ÷ 72,861 = 0.54
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Broadcom Inc. debt to assets ratio deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Debt to Assets (including Operating Lease Liability)
Broadcom Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | Nov 4, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Current portion of long-term debt | 1,608) | 440) | 290) | 827) | 2,787) | —) | |
| Long-term debt, excluding current portion | 37,621) | 39,075) | 39,440) | 40,235) | 30,011) | 17,493) | |
| Total debt | 39,229) | 39,515) | 39,730) | 41,062) | 32,798) | 17,493) | |
| Short-term lease liabilities, operating leases (classified in Other current liabilities) | 60) | 74) | 83) | 100) | —) | —) | |
| Long-term lease liabilities, operating leases (classified in Other long-term liabilities) | 359) | 389) | 460) | 527) | —) | —) | |
| Total debt (including operating lease liability) | 39,648) | 39,978) | 40,273) | 41,689) | 32,798) | 17,493) | |
| Total assets | 72,861) | 73,249) | 75,570) | 75,933) | 67,493) | 50,124) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.54 | 0.55 | 0.53 | 0.55 | 0.49 | 0.35 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.05 | 0.04 | 0.06 | 0.06 | 0.12 | — | |
| Analog Devices Inc. | 0.15 | 0.14 | 0.14 | 0.25 | 0.26 | 0.31 | |
| Applied Materials Inc. | 0.20 | 0.22 | 0.22 | 0.26 | 0.28 | 0.30 | |
| First Solar Inc. | 0.06 | 0.03 | 0.05 | 0.07 | 0.08 | — | |
| Intel Corp. | 0.26 | 0.23 | 0.23 | 0.24 | 0.22 | — | |
| KLA Corp. | 0.43 | 0.54 | 0.35 | 0.38 | 0.38 | — | |
| Lam Research Corp. | 0.28 | 0.30 | 0.33 | 0.41 | 0.37 | — | |
| Micron Technology Inc. | 0.22 | 0.11 | 0.12 | 0.13 | 0.12 | — | |
| NVIDIA Corp. | 0.29 | 0.27 | 0.27 | 0.15 | 0.15 | — | |
| Qualcomm Inc. | 0.31 | 0.33 | 0.40 | 0.46 | 0.48 | — | |
| Texas Instruments Inc. | 0.36 | 0.34 | 0.33 | 0.37 | 0.34 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.27 | 0.25 | 0.27 | 0.30 | 0.29 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.28 | 0.29 | 0.31 | 0.33 | 0.31 | — | |
Based on: 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), 10-K (reporting date: 2018-11-04).
1 2023 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 39,648 ÷ 72,861 = 0.54
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Broadcom Inc. debt to assets ratio (including operating lease liability) deteriorated from 2021 to 2022 but then slightly improved from 2022 to 2023. |
Financial Leverage
Broadcom Inc., financial leverage calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | Nov 4, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Total assets | 72,861) | 73,249) | 75,570) | 75,933) | 67,493) | 50,124) | |
| Stockholders’ equity | 23,988) | 22,709) | 24,962) | 23,874) | 24,941) | 26,657) | |
| Solvency Ratio | |||||||
| Financial leverage1 | 3.04 | 3.23 | 3.03 | 3.18 | 2.71 | 1.88 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 1.21 | 1.23 | 1.66 | 1.54 | 2.13 | — | |
| Analog Devices Inc. | 1.37 | 1.38 | 1.38 | 1.79 | 1.83 | 1.86 | |
| Applied Materials Inc. | 1.88 | 2.19 | 2.11 | 2.11 | 2.32 | 2.60 | |
| First Solar Inc. | 1.55 | 1.41 | 1.24 | 1.29 | 1.47 | — | |
| Intel Corp. | 1.81 | 1.80 | 1.77 | 1.89 | 1.76 | — | |
| KLA Corp. | 4.82 | 8.99 | 3.04 | 3.48 | 3.39 | — | |
| Lam Research Corp. | 2.29 | 2.74 | 2.64 | 2.81 | 2.57 | — | |
| Micron Technology Inc. | 1.46 | 1.33 | 1.34 | 1.38 | 1.36 | — | |
| NVIDIA Corp. | 1.86 | 1.66 | 1.70 | 1.42 | 1.42 | — | |
| Qualcomm Inc. | 2.37 | 2.72 | 4.14 | 5.86 | 6.71 | — | |
| Texas Instruments Inc. | 1.91 | 1.87 | 1.85 | 2.11 | 2.02 | — | |
| Financial Leverage, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 1.79 | 1.78 | 1.88 | 2.06 | 1.99 | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.44 | 2.56 | 2.71 | 2.90 | 2.86 | — | |
Based on: 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), 10-K (reporting date: 2018-11-04).
1 2023 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 72,861 ÷ 23,988 = 3.04
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Broadcom Inc. financial leverage ratio increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level. |
Interest Coverage
Broadcom Inc., interest coverage calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | Nov 4, 2018 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income attributable to Broadcom Inc. stockholders | 14,082) | 11,495) | 6,736) | 2,960) | 2,724) | 12,259) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | —) | 351) | |
| Less: Loss from discontinued operations, net of income taxes | —) | —) | —) | (1) | (12) | (19) | |
| Add: Income tax expense | 1,015) | 939) | 29) | (518) | (510) | (8,084) | |
| Add: Interest expense | 1,622) | 1,737) | 1,885) | 1,777) | 1,444) | 628) | |
| Earnings before interest and tax (EBIT) | 16,719) | 14,171) | 8,650) | 4,220) | 3,670) | 5,173) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 10.31 | 8.16 | 4.59 | 2.37 | 2.54 | 8.24 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 5.79 | 14.61 | 109.09 | 28.23 | 4.96 | — | |
| Analog Devices Inc. | 14.63 | 16.46 | 8.19 | 7.79 | 7.49 | 7.46 | |
| Applied Materials Inc. | 33.42 | 34.33 | 29.69 | 18.36 | 14.79 | 21.06 | |
| First Solar Inc. | 69.75 | 1.70 | 44.65 | 13.11 | -3.45 | — | |
| Intel Corp. | 1.87 | 16.66 | 37.35 | 40.87 | 50.20 | — | |
| KLA Corp. | 13.76 | 22.76 | 16.00 | 9.22 | 11.40 | — | |
| Lam Research Corp. | 28.40 | 29.11 | 21.95 | 15.51 | 21.86 | — | |
| Micron Technology Inc. | -13.58 | 51.66 | 35.18 | 16.41 | 56.09 | — | |
| NVIDIA Corp. | 16.96 | 43.12 | 24.96 | 58.12 | 68.17 | — | |
| Qualcomm Inc. | 11.72 | 31.61 | 19.38 | 10.50 | 12.93 | — | |
| Texas Instruments Inc. | 22.01 | 47.88 | 49.47 | 32.67 | 34.69 | — | |
| Interest Coverage, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 10.59 | 21.15 | 18.49 | 14.10 | 16.80 | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 18.86 | 24.65 | 23.05 | 16.83 | 15.85 | — | |
Based on: 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), 10-K (reporting date: 2018-11-04).
1 2023 Calculation
Interest coverage = EBIT ÷ Interest expense
= 16,719 ÷ 1,622 = 10.31
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Broadcom Inc. interest coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |
Fixed Charge Coverage
Broadcom Inc., fixed charge coverage calculation, comparison to benchmarks
| Oct 29, 2023 | Oct 30, 2022 | Oct 31, 2021 | Nov 1, 2020 | Nov 3, 2019 | Nov 4, 2018 | ||
|---|---|---|---|---|---|---|---|
| Statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | 21.00% | |
| Selected Financial Data (US$ in millions) | |||||||
| Net income attributable to Broadcom Inc. stockholders | 14,082) | 11,495) | 6,736) | 2,960) | 2,724) | 12,259) | |
| Add: Net income attributable to noncontrolling interest | —) | —) | —) | —) | —) | 351) | |
| Less: Loss from discontinued operations, net of income taxes | —) | —) | —) | (1) | (12) | (19) | |
| Add: Income tax expense | 1,015) | 939) | 29) | (518) | (510) | (8,084) | |
| Add: Interest expense | 1,622) | 1,737) | 1,885) | 1,777) | 1,444) | 628) | |
| Earnings before interest and tax (EBIT) | 16,719) | 14,171) | 8,650) | 4,220) | 3,670) | 5,173) | |
| Add: Operating lease expense | 91) | 98) | 102) | 106) | 244) | 233) | |
| Earnings before fixed charges and tax | 16,810) | 14,269) | 8,752) | 4,326) | 3,914) | 5,406) | |
| Interest expense | 1,622) | 1,737) | 1,885) | 1,777) | 1,444) | 628) | |
| Operating lease expense | 91) | 98) | 102) | 106) | 244) | 233) | |
| Dividends on preferred stock | —) | 272) | 299) | 297) | 29) | —) | |
| Dividends on preferred stock, tax adjustment1 | —) | 72) | 79) | 79) | 8) | —) | |
| Dividends on preferred stock, after tax adjustment | —) | 344) | 378) | 376) | 37) | —) | |
| Fixed charges | 1,713) | 2,179) | 2,365) | 2,259) | 1,725) | 861) | |
| Solvency Ratio | |||||||
| Fixed charge coverage2 | 9.81 | 6.55 | 3.70 | 1.92 | 2.27 | 6.28 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors3 | |||||||
| Advanced Micro Devices Inc. | 3.18 | 6.82 | 36.00 | 13.08 | 3.48 | — | |
| Analog Devices Inc. | 11.89 | 12.87 | 6.64 | 6.48 | 5.62 | 5.84 | |
| Applied Materials Inc. | 23.69 | 24.67 | 22.50 | 14.48 | 12.35 | 17.53 | |
| First Solar Inc. | 36.57 | 1.32 | 19.58 | 7.80 | -1.46 | — | |
| Intel Corp. | 1.59 | 7.34 | 16.56 | 25.00 | 36.69 | — | |
| KLA Corp. | 12.19 | 18.72 | 13.03 | 7.74 | 10.39 | — | |
| Lam Research Corp. | 20.49 | 21.44 | 17.80 | 12.52 | 17.83 | — | |
| Micron Technology Inc. | -9.77 | 31.49 | 22.49 | 11.10 | 32.90 | — | |
| NVIDIA Corp. | 10.19 | 25.61 | 14.40 | 18.89 | 29.23 | — | |
| Qualcomm Inc. | 9.29 | 22.52 | 14.48 | 8.30 | 10.68 | — | |
| Texas Instruments Inc. | 18.41 | 36.70 | 36.25 | 24.14 | 25.27 | — | |
| Fixed Charge Coverage, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 8.44 | 14.35 | 12.78 | 10.41 | 13.18 | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 11.88 | 14.17 | 13.49 | 10.22 | 10.45 | — | |
Based on: 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), 10-K (reporting date: 2018-11-04).
1 2023 Calculation
Dividends on preferred stock, tax adjustment = (Dividends on preferred stock × Statutory tax rate) ÷ (1 − Statutory tax rate)
= (0 × 21.00%) ÷ (1 − 21.00%) = 0
2 2023 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 16,810 ÷ 1,713 = 9.81
3 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Broadcom Inc. fixed charge coverage ratio improved from 2021 to 2022 and from 2022 to 2023. |