[Broadcom Financial Analysis Episode 5 (Final): The Post-Earnings Crash Signals the Future — The Day When Big Tech’s "In-House Development" and the 10 trillion Yen Debt Upside Down the Hourglass]
ICHIRO|Financial Statement Anatomy Lab
So far in four installments, behind an extraordinary profitability with an operating margin of 49%, we have exposed Broadcom’s distorted financial structure, where fundamental research (0→1) within the company has effectively been abandoned, more than half of its assets are buried in “Goodwill” from past acquisitions, and even the method of employee taxation has been changed to funnel cash into its own stock buybacks.
And in the most recent quarterly earnings release, despite a dazzling revenue figure of $22.1 billion, Wall Street’s stock price plummeted more than 15% immediately after the announcement, in a market-wide turmoil.
Why did the market, upon seeing the seemingly perfect harvest statement of a champion, all rush to sell? There lay the exposure of a deadly Achilles’ heel that the company had concealed for so long.
Past articles available here?