Avnet Inc (AVT)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,406,630 | 2,988,030 | 1,437,400 | 1,191,330 | 1,424,790 |
| Total assets | US$ in thousands | 12,209,100 | 12,477,200 | 10,388,500 | 8,925,400 | 8,105,200 |
| Debt-to-assets ratio | 0.20 | 0.24 | 0.14 | 0.13 | 0.18 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,406,630K ÷ $12,209,100K
= 0.20
Avnet Inc's debt-to-assets ratio has fluctuated over the past five years. In 2024, the ratio stands at 0.20, which indicates that 20% of the company's total assets are financed by debt. This represents a slight decrease from the previous year's ratio of 0.24. Comparing 2024 to 2023, the lower ratio suggests that Avnet Inc has reduced its reliance on debt to finance its operations.
Looking at the trend over the five-year period, the ratio has ranged from 0.13 to 0.24. The lowest ratio was seen in 2021 at 0.13, indicating a smaller proportion of debt financing relative to total assets. Conversely, the highest ratio was recorded in 2023 at 0.24, signaling a higher dependency on debt financing.
Overall, a lower debt-to-assets ratio implies greater financial stability and less financial risk for Avnet Inc, as a smaller portion of its assets are supported by debt. However, it is essential to consider the industry norms and the company's specific circumstances when evaluating the significance of this ratio.
Peer comparison
Jun 30, 2024