Aureus
AExcellent

Broadcom Inc.(AVGO)

A

Financial data as of Oct 31, 2025Improving · Technology

FCF Margin30.3%Free Cash Flow / Revenue
Cash Conversion119.1%Operating CF / Net Income
Free Cash Flow$26.9B
Revenue$63.9B
Net Cash-$49.0BNet debt position
Debt / FCF3.4xElevated debt burden
Current Ratio1.71Adequate short-term liquidity
YoY FCF Growth+23.3%5 of 5 quarters positive

How This Grade Was Calculated

Base grade from FCF margin, adjusted by financial health factors

BaseA
→
+0.5Healthy FCF margin with manageable debt (30.3%, 3.4x)
→
+1Strong YoY FCF growth (23.3% YoY)
→
+0.5Highly consistent quarterly FCF
→
FinalA

Analysis Summary

Strengths

  • Exceptional FCF margin (30.3%)
  • Excellent cash conversion (119%)
  • Strong YoY FCF growth (+23.3%)
  • Highly consistent quarterly FCF
  • Strong revenue growth (29.5% YoY)

Concerns

  • Net debt position ($49.0B) — 3.4x FCF, manageable
SBC-adjusted FCF used — $7.6B stock-based compensation (28% of reported FCF) subtracted

Financial Breakdown

Key financials compared side by side

Margin Composition

FCF Margin30.3%
Net Margin36.2%
Operating CF Margin43.1%
CapEx Ratio1.0%

Balance Sheet Health

Debt, liquidity, and leverage snapshot

Net Cash-$49.0BNet debt position
Debt / FCF3.4xElevated debt burden
Current Ratio1.71Strong liquidity
Debt / Equity0.80Low leverage

Quarterly FCF Trend

+23.3% YoYImproving (+23.3%)

Free cash flow per quarter

Sector Comparison — Technology

FCF Margin ranked against sector peers

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Detailed Metrics

Company NameBroadcom Inc.
SectorTechnology
Free Cash Flow$26.9B
Revenue$63.9B
Net Income$23.1B
Operating Cash Flow$27.5B
Capital Expenditure$623.0M
FCF Margin30.3%
Cash Conversion Rate119.1%
Net Margin36.2%
Total Debt$65.1B
Total Cash$16.2B
Net Cash-$49.0B
Current Ratio1.71
Debt / Equity0.80
Debt / FCF3.4x
YoY FCF Growth+23.3%
Positive Quarters5 of 5
Trend DirectionImproving
Report DateOct 31, 2025
GradeA
Data SourceYahoo Finance

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