Keysight Technologies Inc (KEYS)

Debt-to-capital ratio

		Oct 31, 2024	Oct 31, 2023	Oct 31, 2022	Oct 31, 2021	Oct 31, 2020
Long-term debt	US$ in thousands	1,790,000	1,195,000	1,793,000	1,791,000	1,789,000
Total stockholders’ equity	US$ in thousands	5,105,000	4,654,000	4,161,000	3,784,000	3,297,000
Debt-to-capital ratio		0.26	0.20	0.30	0.32	0.35

October 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,790,000K ÷ ($1,790,000K + $5,105,000K)
= 0.26

The debt-to-capital ratio of Keysight Technologies Inc has shown fluctuation over the past five years, ranging from 0.20 to 0.35. The ratio indicates the proportion of the company's capital that is funded by debt. A lower ratio suggests a lower reliance on debt financing, while a higher ratio indicates higher leverage.

In 2024, the debt-to-capital ratio increased to 0.26 from 0.20 in 2023, signifying a slight increase in the company's debt relative to its total capital. Despite this uptick, the ratio remains relatively moderate, indicating a balanced mix of debt and equity in the capital structure.

Looking back to 2022 and 2021, the ratio was higher at 0.30 and 0.32, respectively, before slightly decreasing in 2023 and 2024. This fluctuation suggests the company may have been actively managing its debt levels during this period.

Comparing the most recent ratio to 2020, when it stood at 0.35, there has been a noticeable reduction in the debt-to-capital ratio. This decline may indicate a strategic effort to decrease reliance on debt financing and improve the company's financial stability.

Overall, the trend in Keysight Technologies Inc's debt-to-capital ratio highlights the company's ability to adapt its capital structure over time, possibly in response to changing market conditions or strategic objectives.