Amphenol Corporation (APH)
Debt-to-equity 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-equity ratio | 0.45 | 0.60 | 0.79 | 0.75 | 0.75 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,742,600K ÷ $8,346,500K
= 0.45
The debt-to-equity ratio of Amphenol Corp. has shown a decreasing trend over the past five years, indicating a relative decrease in the company's reliance on debt to finance its operations compared to its shareholders' equity. This trend suggests that the company has been gradually reducing its debt levels in relation to its equity, which can be seen as a positive sign of financial stability and creditworthiness.
In 2023, the debt-to-equity ratio decreased to 0.52 from 0.65 in 2022, reflecting a significant improvement in the company's capital structure. This reduction implies that the company has either decreased its debt levels or increased its equity base during the year, which could lead to a lower financial risk and potentially greater financial flexibility.
Comparing the 2023 ratio to 2019, when the debt-to-equity ratio was 0.80, there has been a noticeable improvement in the company's leverage position, indicating a more conservative approach to financing its operations over the years. This downward trend in the debt-to-equity ratio may signal that Amphenol Corp. has been managing its debt levels prudently and effectively, enhancing its overall financial health and resilience to economic uncertainties.
Overall, the decreasing trend in Amphenol Corp.'s debt-to-equity ratio over the past five years suggests a positive shift towards a healthier balance between debt and equity financing, which may contribute to the company's long-term sustainability and growth prospects.