Amphenol Corporation (APH)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,742,600 | 4,182,300 | 5,005,800 | 4,031,200 | 3,379,400 |
| Total assets | US$ in thousands | 16,526,400 | 15,326,200 | 14,678,400 | 12,327,300 | 10,815,500 |
| Debt-to-assets ratio | 0.23 | 0.27 | 0.34 | 0.33 | 0.31 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,742,600K ÷ $16,526,400K
= 0.23
Amphenol Corp.'s debt-to-assets ratio has been on a declining trend over the past five years, decreasing from 0.33 in 2019 to 0.26 in 2023. This indicates that the company has been reducing its reliance on debt to finance its assets over time. A lower debt-to-assets ratio is generally considered favorable as it suggests a lower financial risk for the company, indicating a healthier balance sheet. However, it is important to note that a low debt-to-assets ratio may also mean lower leverage and potentially lower returns on equity. Overall, the decreasing trend in the debt-to-assets ratio for Amphenol Corp. reflects a prudent approach to managing its financial obligations and maintaining a strong financial position.