Amphenol Corporation (APH)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,259,300 | 3,742,600 | 4,182,300 | 5,005,800 | 4,031,200 |
| Total stockholders’ equity | US$ in thousands | 9,792,000 | 8,346,500 | 7,015,600 | 6,302,000 | 5,384,900 |
| Debt-to-capital ratio | 0.39 | 0.31 | 0.37 | 0.44 | 0.43 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,259,300K ÷ ($6,259,300K + $9,792,000K)
= 0.39
Based on the data provided, the debt-to-capital ratio of Amphenol Corporation has displayed some fluctuation over the past five years. The ratio decreased from 0.43 as of December 31, 2020, to 0.37 as of December 31, 2022, before experiencing a slight increase to 0.39 by December 31, 2024.
A decreasing trend in the debt-to-capital ratio indicates that Amphenol Corporation has been reducing its reliance on debt financing in relation to its total capital, which could be seen as a positive sign of financial stability and strength. However, the slight increase in the ratio in 2024 suggests that the company may have taken on a slightly higher level of debt relative to its capital in that year.
Overall, it is important for Amphenol Corporation to carefully manage its debt levels to maintain a healthy balance between debt and capital, ensuring sustainable growth and financial health in the long term.