Broadcom
Through the investors’ lenses
Each of these investors has said in public what they look at before buying. Click a name to see how this company measures up — a tick where it passes one of their tests, a cross where it does not.
Warren Buffett 3/4
| Measure | AVGO | Checked against | |
|---|---|---|---|
| Owner earnings | $23.08bn | positive | ✓ |
| Return on equity | 28.4% | median 11.7% | ✓ |
| Debt to equity | 0.80x | median 0.79x | ✗ |
| Operating margin | 39.9% | median 15.0% | ✓ |
Passes 3 of 4. To be clear: Warren Buffett has never said anything about Broadcom. These are the company’s own figures put through the tests he described. What he looks at, and why →
Terry Smith 2/4
| Measure | AVGO | Checked against | |
|---|---|---|---|
| Return on capital employed | 17.4% | median 10.1% | ✓ |
| Cash conversion | 1.19x | median 1.78x | ✗ |
| Operating margin | 39.9% | median 15.0% | ✓ |
| Debt to equity | 0.80x | median 0.79x | ✗ |
Passes 2 of 4. To be clear: Terry Smith has never said anything about Broadcom. These are the company’s own figures put through the tests he described. What he looks at, and why →
Charlie Munger 3/3
| Measure | AVGO | Checked against | |
|---|---|---|---|
| Return on capital employed | 17.4% | median 10.1% | ✓ |
| Return on equity | 28.4% | median 11.7% | ✓ |
| Operating margin | 39.9% | median 15.0% | ✓ |
Passes 3 of 3. To be clear: Charlie Munger has never said anything about Broadcom. These are the company’s own figures put through the tests he described. What he looks at, and why →
Chuck Akre 1/4
| Measure | AVGO | Checked against | |
|---|---|---|---|
| Return on equity | 28.4% | median 11.7% | ✓ |
| Debt to equity | 0.80x | median 0.79x | ✗ |
| Cash conversion | 1.19x | median 1.78x | ✗ |
| Return on equity, sustained | 6 of 10 | 8 of 10 above median | ✗ |
Passes 1 of 4. To be clear: Chuck Akre has never said anything about Broadcom. These are the company’s own figures put through the tests he described. What he looks at, and why →
Philip Fisher 4/4
| Measure | AVGO | Checked against | |
|---|---|---|---|
| Operating margin | 39.9% | median 15.0% | ✓ |
| Net margin | 36.2% | median 10.2% | ✓ |
| Return on capital employed | 17.4% | median 10.1% | ✓ |
| Operating margin, held or improving | 39.9% | 10-yr median 24.6% | ✓ |
Passes 4 of 4. To be clear: Philip Fisher has never said anything about Broadcom. These are the company’s own figures put through the tests he described. What he looks at, and why →
Walter Schloss 1/2
| Measure | AVGO | Checked against | |
|---|---|---|---|
| Current ratio | 1.71x | median 1.25x | ✓ |
| Debt to equity | 0.80x | median 0.79x | ✗ |
Passes 1 of 2. To be clear: Walter Schloss has never said anything about Broadcom. These are the company’s own figures put through the tests he described. What he looks at, and why →
Benjamin Graham 0/3
| Measure | AVGO | Checked against | |
|---|---|---|---|
| Current ratio | 1.71x | 2.00x published | ✗ |
| Long-term debt to working capital | 4.75x | 1.00x published | ✗ |
| Positive earnings, ten years running | 9 yrs | 10 published | ✗ |
Passes 0 of 3. To be clear: Benjamin Graham has never said anything about Broadcom. These are the company’s own figures put through the tests he described. What he looks at, and why →
Joel Greenblatt 1/1
| Measure | AVGO | Checked against | |
|---|---|---|---|
| Return on capital employed | 17.4% | median 10.1% | ✓ |
Passes 1 of 1. To be clear: Joel Greenblatt has never said anything about Broadcom. These are the company’s own figures put through the tests he described. What he looks at, and why →
Peter Lynch 1/2
| Measure | AVGO | Checked against | |
|---|---|---|---|
| Debt to equity | 0.80x | median 0.79x | ✗ |
| Net margin | 36.2% | median 10.2% | ✓ |
Passes 1 of 2. To be clear: Peter Lynch has never said anything about Broadcom. These are the company’s own figures put through the tests he described. What he looks at, and why →
| Basis | Payout | Why |
|---|---|---|
| GAAP earnings | 49.5% | whyThe figure most screeners publish. |
| Operating cash flow | 40.5% | whyBefore capital spending. |
| Free cash flow | 41.4% | whyAfter maintaining the business. |
9 points between highest and lowest basis.
Coverage rating 59 / 100 — Tight. ? Peer standing 14/50Direction 25/30Stability 20/20
Free cash flow payout, last 6 years
| Fiscal year | Payout |
|---|---|
| 2025-11-02 | 41.4% |
| 2024-11-03 | 50.6% |
| 2023-10-29 | 43.4% |
| 2022-10-30 | 41.3% |
| 2021-10-31 | 44.4% |
| 2020-11-01 | 45.1% |
29% of the 42 technology here pay out more.
The arithmetic
- GAAP earnings — dividends declared per share $2.36 ÷ diluted EPS $4.77
- Operating cash flow — dividends paid $11,142m ÷ operating cash flow $27,537m
- Free cash flow — dividends paid $11,142m ÷ (operating cash flow $27,537m − capex $623m)
Where the figures came from
- 10-K filed 2025-12-18 · accession 0001730168-25-000121
All public at sec.gov — you should not have to take our word for it.
Computed straight from SEC XBRL. A number that looks wrong to you is more useful to us than agreement — tell us.
What the free cash flow payout ratio measures, and where every company here sits on it.
Also on: rated tight · when it files.
When this changes
Every figure above is recomputed whenever Broadcom files. The monthly letter carries what filed, what moved, and one finding computed across every company here.