Keysight Technologies Inc (KEYS)

Debt-to-equity 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 stockholders’ equity	US$ in thousands	4,654,000	4,161,000	3,784,000	3,297,000	3,004,000
Debt-to-equity ratio		0.26	0.43	0.47	0.54	0.60

October 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,195,000K ÷ $4,654,000K
= 0.26

Keysight Technologies Inc's debt-to-equity ratio has exhibited a declining trend over the past five years, from 0.60 in 2019 to 0.39 in 2023. This indicates a reduction in the company's reliance on debt to finance its operations and investments relative to shareholders' equity.

The decreasing trend in the debt-to-equity ratio suggests that Keysight Technologies Inc has been managing its capital structure by reducing its debt levels or increasing its equity. A lower debt-to-equity ratio generally signifies a lower financial risk and greater financial stability, as the company is relying less on borrowed funds to support its business activities.

This decreasing trend may be perceived positively by investors and creditors as it indicates that the company is becoming less leveraged over time. However, it is essential to note that a very low debt-to-equity ratio may also indicate underutilization of debt and potential missed opportunities for leveraging financial leverage for business growth.

Overall, the declining debt-to-equity ratio of Keysight Technologies Inc reflects a prudent approach to capital structure management and potentially enhanced financial strength, which could be viewed positively by stakeholders.