Broadcom Inc. — Earnings Quality Grade F
AVGO · Technology
Major red flags
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 41 days, change +10 days YoY
AR growth 61.8% exceeds revenue growth 23.9%
Revenue 23.9%, CFFO 37.9%. Cash follows revenue
Expense Quality
Inventory growth 29.0% far exceeds COGS 8.0%, margin rising. Fraud signal
CapEx growth 13.7% vs revenue 23.9%. Normal
SG&A/Gross Profit = 9.7%, excellent (<30%)
Gross margin rose +4.7pp while AR increased and AP decreased. Fraud pattern
Cash Flow Quality
CFFO/NI = 1.19. Profits backed by cash
FCF $26.9B, FCF/NI = 1.16
Accruals ratio = -2.6%. Low accruals
Cash $16.2B covers only 25% of debt $65.1B
Balance Sheet Health
Goodwill+Intangibles $130.1B = 160% of equity. Over 50%
Debt/EBITDA = 1.9x. Healthy
Other assets 36.3% vs revenue 23.9%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change -6% YoY. Normal
Manipulation Score
M-Score = -2.10 (grey zone)
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-08