Littelfuse Inc (LFUS)
Debt-to-equity ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 857,915 | 857,006 | 864,223 | 866,925 | 866,623 | 975,610 | 884,569 | 606,741 | 611,897 | 620,112 | 626,917 | 623,865 | 687,034 | 725,507 | 776,205 | 764,195 | 669,158 | 668,160 | 676,940 | 676,510 |
| Total stockholders’ equity | US$ in thousands | 2,480,170 | 2,404,510 | 2,356,960 | 2,307,230 | 2,211,190 | 2,088,720 | 2,051,810 | 2,000,520 | 1,893,390 | 1,821,270 | 1,742,090 | 1,660,610 | 1,608,640 | 1,529,430 | 1,462,300 | 1,476,820 | 1,495,880 | 1,472,080 | 1,509,810 | 1,505,260 |
| Debt-to-equity ratio | 0.35 | 0.36 | 0.37 | 0.38 | 0.39 | 0.47 | 0.43 | 0.30 | 0.32 | 0.34 | 0.36 | 0.38 | 0.43 | 0.47 | 0.53 | 0.52 | 0.45 | 0.45 | 0.45 | 0.45 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $857,915K ÷ $2,480,170K
= 0.35
The debt-to-equity ratio of Littelfuse Inc has fluctuated over the past five years, ranging from 0.30 to 0.53. A decreasing trend in the ratio from 0.53 in March 2020 to 0.35 in December 2023 indicates a lower reliance on debt financing compared to equity, which can be seen as a positive sign of financial stability. However, the ratio slightly increased to 0.38 by March 2023.
In general, a lower debt-to-equity ratio suggests that the company is less reliant on debt to finance its operations and growth, which can reduce financial risk and increase financial flexibility. Littelfuse Inc appears to have efficiently managed its debt levels relative to equity over the years, avoiding excessive leverage that could potentially lead to financial distress. It is important to continue monitoring this ratio to ensure the company maintains a healthy capital structure.
Peer comparison
Dec 31, 2023