Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I did a little more digging into Broadcom's cash
conversion cycle and found that they're actually
looking pretty good in that respect.

Some key ratios:

DSO (Days Sales Outstanding):
1997 - 98.1
1998 - 66.36
(improving...)

DI (Days In Inventory):
1997 - 66.24
1998 - 30.5
(improving...)

DPO (Days Payable Outstanding):
1997 - 111.28
1998 - 113
(improving...)

Cash Conversion Cycle:
1997: 53.06 days
1998: -16.14 days

This is quite an improvement year-over-year in their
cash management and in fact shows that their suppliers
are financing their working capital... a feat pulled
off by stellar companies like Amazon, etc.

Does this justify their high Flow Ratio? I dunno...
Any Fools want to weigh in on Broadcom's chances of
dominating the broadband chip industry in the
long-term?

-- Chad
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.