Broadcom maintains superior cash conversion efficiency with an OCF/NI ratio of 1.13 and a robust 46.3% FCF margin, supported by a minimal CapEx/Revenue ratio of 1.0%.
| Metric | TTM | Nov'25 | Nov'24 | Oct'23 | Oct'22 | Oct'21 | Nov'20 | Nov'19 | Nov'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 |
|---|
| Cash from Operations | 33.62B | 27.54B | 19.96B | 18.09B | 16.74B | 13.76B | 12.06B | 9.7B | 8.88B | 6.55B | 3.41B | 2.32B | 1.18B | 722M | 693M | 726M | 510M | 139M | 208M | 146M | 370M |
| Operating CF Margin % | - | 43.1% | 38.71% | 50.49% | 50.41% | 50.14% | 50.49% | 42.91% | 42.59% | 37.15% | 25.76% | 33.97% | 27.52% | 28.65% | 29.31% | 31.08% | 24.37% | 9.37% | 12.24% | 9.56% | 24.45% |
| Operating CF Growth % | 177.04% | 37.95% | 10.38% | 8.06% | 21.59% | 14.12% | 24.38% | 9.2% | 35.55% | 92.06% | 47.15% | 97.28% | 62.74% | 4.18% | -4.55% | 42.35% | 266.91% | -33.17% | 42.47% | -60.54% | - |
| Net Income | 34.49B | 23.13B | 5.89B | 14.08B | 11.49B | 6.74B | 2.96B | 2.72B | 12.61B | 1.89B | -1.86B | 1.36B | 245M | 552M | 563M | 552M | 415M | -44M | 83M | -159M | -253M |
| Depreciation & Amortization | 8.75B | 8.78B | 10.01B | 3.83B | 4.98B | 6.04B | 6.91B | 5.81B | 4.08B | 4.74B | 3.04B | 962M | 625M | 187M | 155M | 157M | 159M | 160M | 159M | 176M | 210M |
| Stock-Based Compensation | 8.79B | 7.57B | 5.74B | 2.17B | 1.53B | 1.7B | 1.98B | 2.19B | 1.23B | 921M | 679M | 232M | 163M | 77M | 53M | 38M | 25M | 12M | 15M | 12M | 0 |
| Deferred Taxes | -774M | 0 | 1.97B | -501M | -34M | -809M | -1.14B | -934M | -8.27B | -173M | 365M | -90M | 42M | 3M | 13M | -538M | 2M | 16M | 0 | 115M | 0 |
| Other Non-Cash Items | -2.54B | -3.43B | 988M | 141M | 412M | 219M | 269M | 98M | 58M | -93M | 703M | 16M | -151M | -6M | -4M | 552M | 8M | 1M | -15M | 5M | 58M |
| Working Capital Changes | -9.92B | -8.5B | -4.64B | -1.64B | -1.65B | -127M | 1.09B | -184M | -826M | -735M | 483M | -166M | 251M | -91M | -87M | -35M | -99M | -6M | -34M | -3M | 355M |
| Change in Receivables | -5.27B | -2.72B | 2.33B | -187M | -870M | 210M | 981M | 486M | -652M | -267M | -491M | -187M | -70M | -26M | -13M | -42M | -96M | 0 | 38M | -31M | 136M |
| Change in Inventory | -2.31B | -510M | 150M | 27M | -627M | -294M | -31M | 250M | 417M | -39M | 996M | 62M | 193M | -55M | 0 | -5M | -26M | 27M | -45M | 28M | 28M |
| Change in Payables | 937M | -118M | 121M | 209M | -79M | 243M | -3M | -42M | -325M | -97M | 33M | 29M | 13M | 22M | -2M | 25M | 23M | -16M | -29M | 29M | 32M |
| Cash from Investing | -596M | -580M | -23.07B | -689M | -667M | -245M | -11.11B | -15.42B | -4.67B | -674M | -9.84B | -241M | -5.88B | -652M | -244M | -122M | -86M | -63M | -94M | 5M | -2.1B |
| Capital Expenditures | -860M | -623M | -548M | -452M | -424M | -443M | -463M | -432M | -635M | -1.07B | -723M | -593M | -409M | -236M | -241M | -112M | -79M | -57M | -65M | -37M | -59M |
| CapEx % of Revenue | 1.05% | 0.98% | 1.06% | 1.26% | 1.28% | 1.61% | 1.94% | 1.91% | 3.05% | 6.06% | 5.46% | 8.69% | 9.58% | 9.37% | 10.19% | 4.79% | 3.77% | 3.84% | 3.83% | 2.42% | 3.9% |
| Acquisitions | 0 | 0 | -25.98B | -53M | -246M | 37M | -10.65B | -15.08B | -4.03B | -30M | -9.16B | 256M | -5.96B | -414M | 0 | 0 | 0 | 0 | 5M | 0 | 1M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | 401M | 392M | 3.48B | -66M | 3M | -12M | 8M | 86M | 183M | 432M | -6M | 110M | 450M | 0 | 1M | -9M | 2M | 1M | 44M | 69M | -2.04B |
| Cash from Financing | -22.87B | -20.13B | -1.73B | -15.62B | -15.82B | -8.97B | 1.61B | 6.49B | -11.12B | 2.23B | 7.7B | -1.86B | 5.33B | -169M | -194M | -336M | -335M | 183M | -210M | -114M | 2B |
| Debt Issued (Net) | -2.74B | -2.81B | 20.35B | -403M | -426M | -1.59B | 7.7B | 13.23B | -973M | 3.72B | 8.19B | -1.82B | 5.59B | -2M | -2M | -233M | -366M | -115M | -202M | -108M | 941M |
| Equity Issued (Net) | -8.29B | -6.09B | -12.2B | -7.56B | -8.34B | -1.13B | -489M | -2.48B | -7.1B | 257M | 295M | 241M | 112M | 6M | -66M | -23M | 28M | 298M | -7M | -2M | 1.06B |
| Dividends Paid | -11.76B | -11.14B | -9.81B | -7.64B | -7.03B | -6.21B | -5.53B | -4.24B | -3B | -1.65B | -750M | -408M | -284M | -198M | -137M | -86M | 0 | 0 | 0 | 0 | -1M |
| Share Repurchases | -8.51B | -6.31B | -12.39B | -7.68B | -8.46B | -1.3B | -765M | -6.41B | -7.26B | 0 | 0 | 0 | -12M | -95M | -110M | -93M | 0 | -6M | -7M | -2M | -249M |
| Other Financing | -73M | -84M | -63M | -12M | -17M | -42M | -69M | -36M | -45M | -92M | -34M | 125M | -87M | 25M | 11M | 6M | 3M | 0 | -1M | -4M | -1M |
| Net Change in Cash | 10.16B | 6.83B | -4.84B | 1.77B | 253M | 4.54B | 2.56B | 763M | -6.91B | 8.11B | 1.27B | 218M | 619M | -99M | 255M | 268M | 89M | 259M | -96M | 37M | 272M |
| Free Cash Flow | 36B | 26.91B | 19.41B | 17.63B | 16.31B | 13.32B | 11.6B | 9.27B | 8.24B | 5.48B | 2.69B | 1.73B | 766M | 486M | 452M | 614M | 431M | 81M | 137M | 109M | 311M |
| FCF Margin % | 44.06% | 42.13% | 37.64% | 49.23% | 49.13% | 48.53% | 48.55% | 41% | 39.55% | 31.08% | 20.3% | 25.28% | 17.94% | 19.29% | 19.12% | 26.28% | 20.59% | 5.46% | 8.06% | 7.14% | 20.56% |
| FCF Growth % | 44.4% | 38.63% | 10.1% | 8.1% | 22.45% | 14.86% | 25.18% | 12.37% | 50.4% | 103.94% | 55.83% | 125.2% | 57.61% | 7.52% | -26.38% | 42.46% | 432.1% | -40.88% | 25.69% | -64.95% | - |
| FCF per Share | 7.38 | 5.55 | 4.06 | 4.13 | 3.86 | 3.11 | 2.75 | 2.21 | 1.91 | 1.34 | 0.70 | 0.61 | 0.29 | 0.19 | 0.18 | 0.24 | 0.18 | 0.04 | 0.06 | 0.05 | 0.13 |
| FCF Conversion (FCF/Net Income) | 1.04x | 1.19x | 3.39x | 1.28x | 1.46x | 2.04x | 4.07x | 3.56x | 0.72x | 3.87x | -1.96x | 1.70x | 4.47x | 1.31x | 1.23x | 1.32x | 1.23x | -3.16x | 2.51x | -0.92x | -1.47x |
| Interest Paid | 602M | 0 | 3.25B | 1.5B | 1.39B | 1.56B | 1.41B | 1.29B | 547M | 310M | 448M | 172M | 78M | 1M | 1M | 14M | 46M | 79M | 85M | 0 | 0 |
| Taxes Paid | 822M | 0 | 3.15B | 1.78B | 908M | 775M | 501M | 741M | 512M | 349M | 242M | 138M | 23M | 6M | 9M | 7M | 6M | 10M | 8M | 0 | 0 |
Geopolitical supply chain concentration
As reported in recent financial statements, Broadcom consistently generates operating cash flow exceeding net income, with an OCF/NI ratio of 1.13 in 2026Q2, highlighting the company's ability to convert accounting profits into tangible liquidity despite significant non-cash charges related to its aggressive acquisition strategy.
The consistent premium of operating cash flow over net income suggests that Broadcom's earnings quality is high, as the business model effectively minimizes the impact of non-cash accruals. Investors should interpret this divergence as a sign of operational efficiency, where the cash-generative nature of the software and networking segments outweighs the accounting noise from purchase price amortization.
Based on the provided data, Broadcom's free cash flow trajectory remains robust, with FCF margins reaching 46.3% in 2026Q2, a trend that appears to be driven by the successful integration of high-margin software assets and the scaling of AI-specific networking silicon demand.
The steady expansion of FCF margins suggests that management's 'buy-integrate-harvest' strategy is successfully optimizing the cash-flow-to-revenue relationship. This trajectory implies that the company is effectively leveraging its dominant market position to extract cash from its infrastructure stack, providing a substantial buffer for debt service and shareholder returns.
According to recent SEC filings, Broadcom maintains a remarkably low capital intensity, with CapEx/Revenue ratios hovering near 1.0% as of 2026Q2, which underscores the benefits of its fabless manufacturing model and reliance on external foundries for high-performance silicon production.
This low capital intensity allows the company to direct the vast majority of its operating cash flow toward dividends, buybacks, and debt reduction rather than heavy property, plant, and equipment investment. Such a structure appears to provide a significant competitive advantage in terms of return on invested capital compared to vertically integrated peers.
As indicated by the quarterly cash flow data, Broadcom has experienced consistent negative working capital changes, including a $2.6 billion outflow in 2026Q2, which may suggest increasing inventory requirements or shifts in payment terms associated with the integration of large-scale software acquisitions.
While the company remains highly cash-generative, the persistent negative working capital trend warrants further investigation into whether this reflects strategic inventory builds for AI networking or potential friction in the software subscription transition. Investors should monitor these outflows to ensure they do not signal a long-term degradation in collection efficiency or supply chain leverage.
Based on reported figures, Broadcom utilizes its robust free cash flow to fund a consistent dividend program and opportunistic share repurchases, with $3.1 billion paid in dividends during 2026Q2, reflecting a clear commitment to returning capital to shareholders following major acquisition cycles.
The company's capital deployment strategy appears to balance the need for inorganic growth with a disciplined approach to shareholder yield. This suggests that management views the current cash flow generation as sufficient to support both the dividend and the ongoing deleveraging process, provided that future acquisition opportunities remain within their strategic and regulatory reach.
Quick answers to the most common questions about buying AVGO stock.
Broadcom Inc. (AVGO) generated $27.54B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Broadcom Inc. (AVGO) generated $26.91B in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Broadcom Inc. (AVGO) spent $623.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Broadcom Inc. (AVGO) returned $11.14B to shareholders via cash dividends and spent $6.31B on share repurchases. This shows the company's commitment to returning capital to its equity investors.