Amphenol Corporation (APH)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 8,346,500 | 7,015,600 | 6,302,000 | 5,384,900 | 4,530,300 |
| Debt-to-capital ratio | 0.31 | 0.37 | 0.44 | 0.43 | 0.43 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,742,600K ÷ ($3,742,600K + $8,346,500K)
= 0.31
The debt-to-capital ratio of Amphenol Corp. has shown a declining trend over the past five years, decreasing from 0.44 in 2019 to 0.34 in 2023. This indicates that the company has been utilizing less debt relative to its total capital structure over the years. A lower debt-to-capital ratio suggests that Amphenol Corp. relies more on equity financing rather than debt to fund its operations and investments. This can be seen as a positive sign of financial stability and reduced financial risk, as the company is less reliant on borrowed funds. The decreasing trend in the debt-to-capital ratio may signal prudent financial management by Amphenol Corp., demonstrating a more conservative approach to managing its capital structure.