Littelfuse Inc (LFUS)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 857,915 | 866,623 | 611,897 | 687,034 | 669,158 |
| Total assets | US$ in thousands | 3,995,280 | 3,903,730 | 3,151,700 | 2,747,590 | 2,559,900 |
| Debt-to-assets ratio | 0.21 | 0.22 | 0.19 | 0.25 | 0.26 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $857,915K ÷ $3,995,280K
= 0.21
The debt-to-assets ratio of Littelfuse Inc has shown a fluctuating trend over the past five years, ranging from 0.19 to 0.26. The ratio indicates the proportion of the company's assets financed through debt. A lower debt-to-assets ratio suggests that a smaller portion of the company's assets is funded by debt, which can be favorable as it signifies lower financial risk and higher financial stability.
Littelfuse Inc's debt-to-assets ratio decreased from 0.26 in 2019 to 0.21 in 2023, indicating a reduction in the reliance on debt financing relative to total assets. This trend suggests that the company has been managing its debt levels more efficiently and potentially improving its financial health.
In 2020, the debt-to-assets ratio peaked at 0.25, reflecting a higher level of debt relative to assets compared to the surrounding years. However, the subsequent decrease in this ratio indicates that the company may have taken steps to reduce debt levels or increase asset base, which could enhance its long-term financial sustainability.
Overall, the downward trend in Littelfuse Inc's debt-to-assets ratio demonstrates a positive development in the company's financial leverage and capital structure over the period under review.
Peer comparison
Dec 31, 2023