No. of Recommendations: 0
Broadcom Corp cnxt txn <Fill in Name>
Current Period Year-ago Period Year-over-Year Current Period Current Period Current Period
FY '99 FY '98 Growth <Date> <Date> <Date>
Income Statement . . .
Sales 5 18,183 216,456 139.4% 2,385 509,963
Cost of Goods Sold 209,837 91,403 129.6% 1,247 277,446
Net Income 115,533 24,592 369.8% 383 51,831
Shares Outstanding 116,142 102,316 13.5%
Balance Sheet . . .
Cash & Equivalents 260,181 96,973 168.3% 2,015,000 277,516
Current Assets 391,327 157,295 148.8% 5,488,000 932,462
Short-term Debt 0 0 No Debt 264,000 0
Current Liabilities 86,062 27,103 217.5% 2,438,000 354,663
Long-term Debt 0 0 No Debt 1,159,000 350,000
1 1 0 Competitors' Average
Margins & Ratios . . .
Gross Margins 59.5% 57.8% 1.7 47.7% 45.6% 46.7%
Net Margins 22.3% 11.4% 10.9 16.1% 10.2% 13.1%
Cash-to-Debt No Debt! No Debt! No Debt! 1.42 0.79 1.29
Net Cash 260181.0 96973.0 168.3% 592000.0 -72484.0 259758.0
Fool Flow Ratio 1.52 2.23 -31.5% 1.60 1.85 1.72
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Ranking Rule Makers
1) Brand Points (0-1) 3) Financial Direction Points (0-3)
Familiarity 1 Sales Growth 3
Openness 1 Gross Margins 3
Optimism 1 Net Margins 3
Legitimacy 1 Shares Outstanding 0
Inevitability 1 Cash-to-Debt 3
Solitariness 1 Fool Flow Ratio 3
Humor 1 Expansion Potential 3
Subtotal 7 Subtotal 18
2) Financial Location Points (0-2) 4) Monopoly Status Points (0-4)
Mass Market Habit 1 Gross Margins 4
Gross Margins 1 Net Margins 4
Net Margins 2 Net Cash 0
Cash-to-Debt 2 Fool Flow Ratio 2
Fool Flow Ratio 0 Convenience 2
Your Interest 2 Subtotal 12
Subtotal 8
5) Your Enjoyment 1
Total Score 46 Second Tier
Broadcom does have an insignificant amount of short
and long term debt (500k each). But there's quite a
difference between cash/debt falling from 2 to .5 and
it falling from 1000 to 250. Oh yeah, the 500k in
short term debt raises the flow ratio from 1.52 to
1.53. I really don't see what the point of counting
this debt is. But if you're a rule maker ranker
purist, it takes off 3 RM points.
brcm's awfully close to 60% gross margins with 59.5%,
but due to increased competition, I doubt they will
make it any time soon. But you never know with this
company...