Earnings Quality
AVGO-US has reported relatively strong net income margin for the last twelve months (23.8% vs. peer median of 11.1%). This strong margin performance was accompanied by a level of accruals that was around peer median (5.5% vs. peer median of 6.2%) suggesting that the reported net income is supported by a reasonable level of accruals.
AVGO-US’s accruals over the last twelve months are positive suggesting a buildup of reserves. However, this level of accruals is also around the peer median and suggests the company is recording a proper level of reserves compared to its peers.
Trend Charts
Company Profile
Avago Technologies Ltd. designs, develops and supplies broad range of analog semiconductor devices with a focus on III-V based products. The company’s product portfolio is extensive and includes 6,500 products in four primary target markets: wireless communications, wired infrastructure, industrial and automotive electronics, and consumer and computing peripherals. Its applications for products in these target markets include cellular phones, consumer appliances, data networking and telecommunications equipment, enterprise storage and servers, power generation and renewable energy systems, factory automation, displays, optical mice and printers. The company was founded in 1961 and is headquartered in Singapore.
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This article was originally written by abha.dawesar, and posted on CapitalCube.
