Stock Analysis on Net
Stock Analysis on Net

Broadcom Inc. (NASDAQ:AVGO)

$24.99

Analysis of Solvency Ratios

Microsoft Excel

Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.

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Solvency Ratios (Summary)

Broadcom Inc., solvency ratios

Microsoft Excel
Nov 2, 2025 Nov 3, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020
Debt Ratios
Debt to equity
Debt to equity (including operating lease liability)
Debt to capital
Debt to capital (including operating lease liability)
Debt to assets
Debt to assets (including operating lease liability)
Financial leverage
Coverage Ratios
Interest coverage
Fixed charge coverage

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).

Debt to Equity Ratios
The debt to equity ratio exhibited moderate fluctuations, starting at 1.72 and decreasing to 1.59, then rising again to 1.74 before gradually declining to 0.8 over the observed period. When incorporating operating lease liabilities, a similar pattern is observed, with ratios slightly higher but converging towards 0.82 in the final period.
Debt to Capital Ratios
Both standard and operating lease-inclusive debt to capital ratios showed relative stability in earlier years around the 0.61 to 0.64 range. A marked decline is noticeable in later years, dropping steadily from approximately 0.64 to 0.44 by the last period, indicating a reduction in leverage relative to capital base.
Debt to Assets Ratios
These ratios remained relatively stable in the initial periods, fluctuating narrowly around 0.53 to 0.55. A considerable decrease occurred in the later periods reaching 0.38 by the end, suggesting a decreased proportion of debt financing relative to total assets, with similar patterns observed when including operating lease liabilities.
Financial Leverage
Financial leverage ratios reflected variations consistent with changes in debt-related ratios, starting at 3.18, dipping to 3.03, rising again to 3.23, then gradually moving downwards to 2.1 over the span. This denotes a reduction in use of debt relative to equity and a potentially lower financial risk profile in recent years.
Interest Coverage
Interest coverage exhibited a strong upward trend from 2.37 to a peak of 10.31, illustrating improving ability to meet interest obligations from operating income. A notable decline in the penultimate period to 3.51 is followed by a recovery to 8.08, indicating some variability but overall enhanced interest servicing capability.
Fixed Charge Coverage
A similar pattern to interest coverage was identified in fixed charge coverage ratios, which rose significantly from 1.92 to 9.81 before dropping to 3.4 and subsequently recovering to 7.7. This mirrors firm’s improving capability to cover fixed obligations, albeit with some fluctuations in the mid-term.

Debt Ratios

Coverage Ratios

Debt to Equity

Broadcom Inc., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Nov 2, 2025 Nov 3, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020
Selected Financial Data (US$ in millions)
Short-term debt
Long-term debt, excluding current portion
Total debt
 
Stockholders’ equity
Solvency Ratio
Debt to equity1
Benchmarks
Debt to Equity, Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Debt to Equity, Sector
Semiconductors & Semiconductor Equipment
Debt to Equity, Industry
Information Technology

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
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =

2 Click competitor name to see calculations.

Total Debt
The total debt showed a relatively stable trend from 2020 to 2023, fluctuating slightly around the 39,000-41,000 million US$ range. However, from 2024 onwards, there is a notable increase in total debt, peaking at 67,566 million US$ in 2024, followed by a slight decline to 65,136 million US$ in 2025. This marks a significant rise compared to previous years.
Stockholders’ Equity
Stockholders' equity experienced some fluctuations in the early years, decreasing from 24,962 million US$ in 2021 to 22,709 million US$ in 2022 before recovering to 23,988 million US$ in 2023. Starting in 2024, the equity value increased markedly, rising to 67,678 million US$ and continuing to grow to 81,292 million US$ by 2025. This growth indicates a strengthening equity base in the latter periods.
Debt to Equity Ratio
The debt to equity ratio decreased from 1.72 in 2020 to 1.59 in 2021, then rose again to 1.74 in 2022, followed by a small decline to 1.64 in 2023. Starting in 2024, the ratio dropped sharply to 1.0 and further decreased to 0.8 in 2025. This reduction suggests an improvement in the company's capital structure, with equity growing faster than debt, thus reducing financial leverage.

Debt to Equity (including Operating Lease Liability)

Broadcom Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Nov 2, 2025 Nov 3, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020
Selected Financial Data (US$ in millions)
Short-term debt
Long-term debt, excluding current portion
Total debt
Short-term lease liabilities, operating leases (classified in Other current liabilities)
Long-term lease liabilities, operating leases (classified in Other long-term liabilities)
Total debt (including operating lease liability)
 
Stockholders’ equity
Solvency Ratio
Debt to equity (including operating lease liability)1
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Debt to Equity (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment
Debt to Equity (including Operating Lease Liability), Industry
Information Technology

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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =

2 Click competitor name to see calculations.

Total Debt (Including Operating Lease Liability)
The total debt experienced a slight decline from 41,689 million USD in 2020 to 39,648 million USD in 2023, indicating modest deleveraging efforts during this period. However, a notable increase occurred in 2024, with total debt rising sharply to 68,916 million USD, followed by a marginal reduction to 66,461 million USD in 2025. This pattern suggests a significant leveraging event or acquisition around 2024, succeeded by some stabilization.
Stockholders’ Equity
Stockholders’ equity demonstrated relative stability between 2020 and 2023, with values fluctuating moderately between 23,874 million USD and 23,988 million USD. In 2024, equity surged dramatically to 67,678 million USD and further increased to 81,292 million USD in 2025. This substantial growth signifies a considerable enhancement in net assets, potentially driven by retained earnings, capital infusions, or revaluation adjustments.
Debt to Equity Ratio (Including Operating Lease Liability)
The debt to equity ratio showed a declining trend overall. It decreased from 1.75 in 2020 to 1.65 in 2023, reflecting an improving capital structure with relatively reduced reliance on debt. A significant drop to 1.02 in 2024 and further to 0.82 in 2025 illustrates a pronounced reduction in leverage relative to equity. This indicates that despite the absolute increase in total debt in 2024 and 2025, the substantial rise in equity improved the company’s leverage position, reducing financial risk.

Debt to Capital

Broadcom Inc., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Nov 2, 2025 Nov 3, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020
Selected Financial Data (US$ in millions)
Short-term debt
Long-term debt, excluding current portion
Total debt
Stockholders’ equity
Total capital
Solvency Ratio
Debt to capital1
Benchmarks
Debt to Capital, Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Debt to Capital, Sector
Semiconductors & Semiconductor Equipment
Debt to Capital, Industry
Information Technology

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
Debt to capital = Total debt ÷ Total capital
= ÷ =

2 Click competitor name to see calculations.

Total Debt
The total debt exhibited a general stability from 2020 through 2023, with values fluctuating slightly between approximately $39,229 million and $41,062 million. However, a significant increase occurred in 2024, with total debt rising sharply to $67,566 million, before decreasing slightly to $65,136 million in 2025.
Total Capital
Total capital remained relatively steady from 2020 to 2023, ranging narrowly around $62,224 million to $64,936 million. In 2024, total capital more than doubled to $135,244 million, and further increased to $146,428 million in 2025, indicating a substantial capital expansion during this period.
Debt to Capital Ratio
The debt to capital ratio showed a slight downward trend from 0.63 in 2020 to 0.62 in 2023, indicating modestly improved capital structure with slightly less reliance on debt. In 2024 and 2025, the ratio decreased more significantly to 0.5 and 0.44 respectively, reflecting a relative reduction in debt compared to the increased capital base, suggesting enhanced financial leverage and possibly improved creditworthiness.

Debt to Capital (including Operating Lease Liability)

Broadcom Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Nov 2, 2025 Nov 3, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020
Selected Financial Data (US$ in millions)
Short-term debt
Long-term debt, excluding current portion
Total debt
Short-term lease liabilities, operating leases (classified in Other current liabilities)
Long-term lease liabilities, operating leases (classified in Other long-term liabilities)
Total debt (including operating lease liability)
Stockholders’ equity
Total capital (including operating lease liability)
Solvency Ratio
Debt to capital (including operating lease liability)1
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Debt to Capital (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment
Debt to Capital (including Operating Lease Liability), Industry
Information Technology

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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =

2 Click competitor name to see calculations.

Total Debt (Including Operating Lease Liability)
Over the observed periods, total debt experienced a gradual decline from $41,689 million in 2020 to $39,648 million in 2023. However, a notable increase occurred in 2024, where total debt surged to $68,916 million, followed by a slight decrease to $66,461 million in 2025. This pattern indicates a significant strategic shift in the company’s debt management in the later years.
Total Capital (Including Operating Lease Liability)
Total capital remained relatively stable between 2020 and 2023, fluctuating marginally from $65,563 million down to $63,636 million. Starting in 2024, total capital increased substantially to $136,594 million and continued to rise to $147,753 million by 2025. This growth suggests an expansion in the company's financial base, potentially through equity issuance, asset growth, or increased liabilities.
Debt to Capital Ratio (Including Operating Lease Liability)
The debt to capital ratio demonstrated moderate stability from 2020 through 2023, hovering between 0.62 and 0.64, indicating a consistent leverage position. Beginning in 2024, the ratio declined sharply to 0.50 and further to 0.45 in 2025. This decline corresponds with the increase in total capital outpacing the rise in total debt, reflecting a reduction in leverage and a potentially more conservative capital structure.
Summary of Financial Trends
The company's financial trends reveal a period of steady leverage and capital levels from 2020 to 2023, followed by a significant increase in both total debt and capital starting in 2024. Despite the absolute rise in debt, the proportionate capital growth led to a decreased debt-to-capital ratio, suggesting improved financial stability or a strategic shift toward lower leverage. These changes may be indicative of large-scale investments, acquisitions, or capital restructuring initiatives undertaken in recent years.

Debt to Assets

Broadcom Inc., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Nov 2, 2025 Nov 3, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020
Selected Financial Data (US$ in millions)
Short-term debt
Long-term debt, excluding current portion
Total debt
 
Total assets
Solvency Ratio
Debt to assets1
Benchmarks
Debt to Assets, Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Debt to Assets, Sector
Semiconductors & Semiconductor Equipment
Debt to Assets, Industry
Information Technology

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
Debt to assets = Total debt ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.

Total Debt
The total debt shows a relatively stable trend from 2020 to 2023, with values slightly decreasing from 41,062 million USD in 2020 to 39,229 million USD in 2023. However, there is a significant increase starting in 2024, reaching 67,566 million USD, before slightly declining to 65,136 million USD in 2025. This indicates a notable rise in debt levels in the later years.
Total Assets
Total assets exhibit a stable pattern from 2020 to 2023, remaining in the range of approximately 72,000 to 76,000 million USD. Starting in 2024, there is a sharp increase in total assets, more than doubling to 165,645 million USD in 2024 and further increasing to 171,092 million USD in 2025. This suggests substantial asset growth in the most recent periods.
Debt to Assets Ratio
The debt to assets ratio remains quite steady between 0.53 and 0.54 from 2020 to 2023, indicating a consistent leverage level during these years. From 2024 onwards, this ratio declines noticeably to 0.41 and further to 0.38 in 2025. This decline corresponds with the rapid asset growth outpacing the increase in total debt, pointing to an improvement in asset coverage relative to debt and potentially lower financial risk.

Debt to Assets (including Operating Lease Liability)

Broadcom Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Nov 2, 2025 Nov 3, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020
Selected Financial Data (US$ in millions)
Short-term debt
Long-term debt, excluding current portion
Total debt
Short-term lease liabilities, operating leases (classified in Other current liabilities)
Long-term lease liabilities, operating leases (classified in Other long-term liabilities)
Total debt (including operating lease liability)
 
Total assets
Solvency Ratio
Debt to assets (including operating lease liability)1
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Debt to Assets (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment
Debt to Assets (including Operating Lease Liability), Industry
Information Technology

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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.

Total Debt (Including Operating Lease Liability)
Over the examined periods, total debt exhibited a general decline from the initial figure of 41,689 million USD to 39,648 million USD by the end of October 2023. Subsequently, there was a notable increase reaching 68,916 million USD by November 2024, followed by a slight decrease to 66,461 million USD in November 2025. This pattern indicates a significant debt accumulation beginning in the 2024 period after several years of relative stability or reduction.
Total Assets
Total assets showed a modest decrease from 75,933 million USD in November 2020 to 72,861 million USD in October 2023. However, there was a marked expansion in asset base starting in November 2024, nearly doubling to 165,645 million USD, and further increasing to 171,092 million USD by November 2025. This substantial growth suggests significant investments or acquisitions during the last two periods covered.
Debt to Assets Ratio (Including Operating Lease Liability)
The debt to assets ratio demonstrated a relatively stable trend between 0.53 and 0.55 during the period from 2020 through 2023, indicating a consistent leverage level. Beginning in 2024, the ratio decreased to 0.42 and further to 0.39 by 2025, despite the rise in total debt. This decline in leverage ratio is explained by the more pronounced growth in total assets relative to debt, implying an improvement in the company's equity buffer and potentially increased financial stability.

Financial Leverage

Broadcom Inc., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Nov 2, 2025 Nov 3, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020
Selected Financial Data (US$ in millions)
Total assets
Stockholders’ equity
Solvency Ratio
Financial leverage1
Benchmarks
Financial Leverage, Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Financial Leverage, Sector
Semiconductors & Semiconductor Equipment
Financial Leverage, Industry
Information Technology

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
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =

2 Click competitor name to see calculations.

Total Assets
The total assets of the company showed a slight decreasing trend from 75,933 million USD in 2020 to 72,861 million USD in 2023. However, there is a significant increase in the subsequent periods, reaching 165,645 million USD in 2024 and 171,092 million USD in 2025, more than doubling the asset base compared to the earlier years.
Stockholders’ Equity
Stockholders’ equity experienced modest fluctuations from 23,874 million USD in 2020 to 23,988 million USD in 2023, indicating relative stability in equity levels during that period. The equity then sharply increased to 67,678 million USD in 2024 and further to 81,292 million USD in 2025, reflecting a substantial growth phase likely due to retained earnings, capital raises, or asset appreciation.
Financial Leverage
The financial leverage ratio demonstrated a downward trend over the years. Starting from 3.18 in 2020, it decreased slightly to 3.04 in 2023, followed by a more pronounced reduction to 2.45 in 2024 and further down to 2.1 in 2025. This trend suggests an improving equity position relative to debt, indicating a strengthening capital structure and potentially lower financial risk.

Interest Coverage

Broadcom Inc., interest coverage calculation, comparison to benchmarks

Microsoft Excel
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
Less: Loss from discontinued operations, net of income taxes
Add: Income tax expense
Add: Interest expense
Earnings before interest and tax (EBIT)
Solvency Ratio
Interest coverage1
Benchmarks
Interest Coverage, Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Interest Coverage, Sector
Semiconductors & Semiconductor Equipment
Interest Coverage, Industry
Information Technology

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
Interest coverage = EBIT ÷ Interest expense
= ÷ =

2 Click competitor name to see calculations.

Earnings before interest and tax (EBIT)
Over the analyzed period, EBIT exhibited a consistent upward trend with some fluctuations. Starting at 4,220 million US dollars in the earliest period, it more than doubled by the second period, reaching 8,650 million. EBIT continued to increase significantly to 14,171 million and peaked at 16,719 million in the fourth period. However, a decline was observed in the fifth period to 13,869 million, followed by a strong recovery and substantial growth to 25,939 million in the most recent period. This indicates overall strong operational profitability with periods of volatility.
Interest Expense
Interest expense remained relatively stable in the first four periods, fluctuating between 1,622 million and 1,885 million US dollars. A sharp increase occurred in the fifth period, where interest expense more than doubled to 3,953 million. This was followed by a decrease to 3,210 million in the final period, which, although lower than the previous period, remained elevated compared to the initial years. This suggests that the company experienced increased borrowing costs or debt levels during the later periods.
Interest Coverage Ratio
The interest coverage ratio, which measures the company's ability to meet interest obligations from EBIT, improved substantially in the first four periods, rising from 2.37 to a peak of 10.31. This reflects growing earnings capacity relative to interest expense during these years. However, the ratio declined sharply to 3.51 in the fifth period, coinciding with the significant spike in interest expense. The final period showed recovery to 8.08, indicating improved ability to cover interest despite elevated interest costs. Overall, the ratio demonstrates that the company maintained strong but fluctuating interest coverage.

Fixed Charge Coverage

Broadcom Inc., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Nov 2, 2025 Nov 3, 2024 Oct 29, 2023 Oct 30, 2022 Oct 31, 2021 Nov 1, 2020
Statutory tax rate
Selected Financial Data (US$ in millions)
Net income
Less: Loss from discontinued operations, net of income taxes
Add: Income tax expense
Add: Interest expense
Earnings before interest and tax (EBIT)
Add: Operating lease expense
Earnings before fixed charges and tax
 
Interest expense
Operating lease expense
Dividends on preferred stock
Dividends on preferred stock, tax adjustment1
Dividends on preferred stock, after tax adjustment
Fixed charges
Solvency Ratio
Fixed charge coverage2
Benchmarks
Fixed Charge Coverage, Competitors3
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Fixed Charge Coverage, Sector
Semiconductors & Semiconductor Equipment
Fixed Charge Coverage, Industry
Information Technology

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
Dividends on preferred stock, tax adjustment = (Dividends on preferred stock × Statutory tax rate) ÷ (1 − Statutory tax rate)
= ( × ) ÷ (1 − ) =

2 2025 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =

3 Click competitor name to see calculations.

Earnings before fixed charges and tax
The earnings before fixed charges and tax have shown a general upward trend over the years. Starting at 4,326 million USD in 2020, there was a significant increase to 8,752 million USD in 2021, which continued with sharp growth reaching 14,269 million USD in 2022 and peaking at 16,810 million USD in 2023. A slight decline was observed in 2024 with earnings falling to 14,056 million USD but then rebounding robustly to 26,121 million USD in 2025. This pattern suggests strong operational performance with some variability in the later years.
Fixed charges
Fixed charges fluctuated during the period. They increased slightly from 2,259 million USD in 2020 to 2,365 million USD in 2021, then declined to 2,179 million USD in 2022 and further decreased to 1,713 million USD in 2023, indicating some reduction in fixed financial obligations during those years. However, this trend reversed as fixed charges rose sharply to 4,140 million USD in 2024 before declining again to 3,392 million USD in 2025. These variations may reflect changes in debt levels or interest expenses.
Fixed charge coverage ratio
The fixed charge coverage ratio, which measures the company's ability to meet fixed financial obligations from its earnings, improved markedly from 1.92 in 2020 to 3.7 in 2021 and then further increased to a peak of 9.81 in 2023. This indicates a strong capacity to cover fixed charges during this period. In 2024, the ratio dropped significantly to 3.4, signaling a relative weakening in coverage, likely due to an increase in fixed charges and a decline in earnings before fixed charges and tax. In 2025, coverage improved again to 7.7, suggesting a recovery in the company’s ability to cover fixed financial obligations.
Overall trends and insights
Overall, the company demonstrated a strong upward trajectory in earnings before fixed charges and tax with some fluctuations in the latter years. Fixed charges showed variability with increases in the middle and later years of the period, which impacted the fixed charge coverage ratio correspondingly. The fixed charge coverage ratio exhibited considerable improvement between 2020 and 2023, reflecting enhanced financial stability and an improved ability to meet fixed obligations, followed by a notable decline in 2024 and partial recovery in 2025. The variations in fixed charges and coverage ratios suggest periods of changing financial leverage or cost of debt management, which should be monitored closely to maintain financial health.