GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Broadcom Inc (NAS:AVGO) » Definitions » Debt-to-EBITDA

Broadcom (Broadcom) Debt-to-EBITDA

: 4.11 (As of Jan. 2024)
View and export this data going back to 2009. Start your Free Trial

Debt-to-EBITDA measures a company's ability to pay off its debt.

Broadcom's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $2,433 Mil. Broadcom's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jan. 2024 was $73,468 Mil. Broadcom's annualized EBITDA for the quarter that ended in Jan. 2024 was $18,452 Mil. Broadcom's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 was 4.11.

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt. According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.

The historical rank and industry rank for Broadcom's Debt-to-EBITDA or its related term are showing as below:

AVGO' s Debt-to-EBITDA Range Over the Past 10 Years
Min: 1.48   Med: 2.6   Max: 5.41
Current: 3.82

During the past 13 years, the highest Debt-to-EBITDA Ratio of Broadcom was 5.41. The lowest was 1.48. And the median was 2.60.

AVGO's Debt-to-EBITDA is ranked worse than
72.78% of 709 companies
in the Semiconductors industry
Industry Median: 1.59 vs AVGO: 3.82

Broadcom Debt-to-EBITDA Historical Data

The historical data trend for Broadcom's Debt-to-EBITDA can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Broadcom Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Debt-to-EBITDA
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.46 3.69 2.70 2.06 1.91

Broadcom Quarterly Data
Apr19 Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24
Debt-to-EBITDA Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.86 1.94 2.00 1.85 4.11

Competitive Comparison

For the Semiconductors subindustry, Broadcom's Debt-to-EBITDA, along with its competitors' market caps and Debt-to-EBITDA data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Broadcom Debt-to-EBITDA Distribution

For the Semiconductors industry and Technology sector, Broadcom's Debt-to-EBITDA distribution charts can be found below:

* The bar in red indicates where Broadcom's Debt-to-EBITDA falls into.



Broadcom Debt-to-EBITDA Calculation

Debt-to-EBITDA measures a company's ability to pay off its debt.

Broadcom's Debt-to-EBITDA for the fiscal year that ended in Oct. 2023 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(1608 + 37621) / 20554
=1.91

Broadcom's annualized Debt-to-EBITDA for the quarter that ended in Jan. 2024 is calculated as

Debt-to-EBITDA=Total Debt / EBITDA
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / EBITDA
=(2433 + 73468) / 18452
=4.11

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual Debt-to-EBITDA, the EBITDA of the last fiscal year is used. In calculating the annualized quarterly data, the EBITDA data used here is four times the quarterly (Jan. 2024) EBITDA data.


Broadcom  (NAS:AVGO) Debt-to-EBITDA Explanation

In the calculation of Debt-to-EBITDA, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by EBITDA. In some calculations, Total Liabilities is used to for calculation.


Be Aware

A high Debt-to-EBITDA ratio generally means that a company may spend more time to paying off its debt.

According to Joel Tillinghast's BIG MONEY THINKS SMALL: Biases, Blind Spots, and Smarter Investing, a ratio of Debt-to-EBITDA exceeding four is usually considered scary unless tangible assets cover the debt.


Broadcom Debt-to-EBITDA Related Terms

Thank you for viewing the detailed overview of Broadcom's Debt-to-EBITDA provided by GuruFocus.com. Please click on the following links to see related term pages.


Broadcom (Broadcom) Business Description

Address
3421 Hillview Avenue, Palo Alto, CA, USA, 94304
Broadcom is the sixth-largest semiconductor company globally and has expanded into various software businesses, with over $30 billion in annual revenue. It sells 17 core semiconductor product lines across wireless, networking, broadband, storage, and industrial markets. It is primarily a fabless designer but holds some manufacturing in-house, like for its best-of-breed FBAR filters that sell into the Apple iPhone. In software, it sells virtualization, infrastructure, and security software to large enterprises, financial institutions, and governments.Broadcom is the product of consolidation. Its businesses are an amalgamation of former companies like legacy Broadcom and Avago Technologies in chips, as well as Brocade, CA Technologies, and Symantec in software.
Executives
Kirsten M. Spears officer: Principal Accounting Officer 1320 RIDDER PARK, SAN JOSE CA 95131
Hock E Tan director, officer: President and CEO BROADCOM INC., 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Eddy W Hartenstein director
Mark David Brazeal officer: Chief Legal Officer 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Charlie B Kawwas officer: SVP & Chief Sales Officer C/O AVAGO TECHNOLOGIES U.S. INC., 350 WEST TRIMBLE ROAD, SAN JOSE CA 95131
Justine Lien director 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Harry L. You director EMC CORPORATION, 176 SOUTH STREET, HOPKINTON MA 01748
Check Kian Low director 1320 RIDDER PARK DRIVE, SAN JOSE CA 95131
Raul J Fernandez director 11600 SUNRISE VALLEY DR, RESTON VA 20191
Gayla J Delly director 3000 TECHNOLOGY DR, ANGLETON TX 77515
Diane M Bryant director 2200 MISSION COLLEGE BLVD, SANTA CLARA CA 95054
Thomas H. Krause officer: Chief Financial Officer 1320 RIDDER PARK, SAN JOSE CA 95131
Henry Samueli director, officer: Chief Technical Officer 5300 CALIFORNIA AVENUE, IRVINE CA 92617-3038
Bryan Ingram officer: SVP & GM, Wireless Semicon Div C/O AVAGO TECHNOLOGIES LIMITED, 350 WEST TRIMBLE ROAD, BLDG. 90, SAN JOSE CA 95131
Donald Macleod director

Broadcom (Broadcom) Headlines

From GuruFocus

Q2 2021 Broadcom Inc Earnings Call Transcript

By GuruFocus Research 01-22-2024

Q1 2023 Broadcom Inc Earnings Call Transcript

By GuruFocus Research 01-22-2024

Q4 2023 Broadcom Inc Earnings Call Transcript

By GuruFocus Research 01-22-2024

Q4 2022 Broadcom Inc Earnings Call Transcript

By GuruFocus Research 01-22-2024

Q2 2020 Broadcom Inc Earnings Call Transcript

By GuruFocus Research 01-22-2024

Q4 2021 Broadcom Inc Earnings Call Transcript

By GuruFocus Research 01-22-2024

Q3 2020 Broadcom Inc Earnings Call Transcript

By GuruFocus Research 01-22-2024