Keysight Technologies Inc (KEYS)
Debt-to-assets ratio
| Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | Oct 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,195,000 | 1,793,000 | 1,791,000 | 1,789,000 | 1,788,000 |
| Total assets | US$ in thousands | 8,683,000 | 8,098,000 | 7,781,000 | 7,218,000 | 6,623,000 |
| Debt-to-assets ratio | 0.14 | 0.22 | 0.23 | 0.25 | 0.27 |
October 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,195,000K ÷ $8,683,000K
= 0.14
The debt-to-assets ratio of Keysight Technologies Inc has demonstrated a consistent downward trend over the past five years, declining from 0.27 in 2019 to 0.21 in 2023. This indicates that the company has been reducing its reliance on debt financing in relation to its total assets. A lower debt-to-assets ratio suggests a stronger financial position and lower risk of insolvency, as it reflects a higher proportion of assets financed by equity rather than debt. This trend may indicate prudent financial management and a focus on maintaining a healthy balance sheet. However, it's important to note that a very low debt-to-assets ratio could also indicate underutilization of debt financing, potentially missing out on the tax benefits of debt and limiting potential for leveraging returns. Overall, the decreasing trend in the debt-to-assets ratio suggests a positive financial trajectory for Keysight Technologies Inc.
Peer comparison
Oct 31, 2023