Lumentum Holdings Inc (LITE)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,503,200 | 2,500,000 | 1,466,100 | 789,800 | 1,120,300 |
| Total assets | US$ in thousands | 3,931,900 | 4,632,100 | 4,162,200 | 3,551,600 | 3,292,600 |
| Debt-to-assets ratio | 0.64 | 0.54 | 0.35 | 0.22 | 0.34 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,503,200K ÷ $3,931,900K
= 0.64
The debt-to-assets ratio of Lumentum Holdings Inc has been fluctuating over the past five years. It increased from 0.22 in June 2021 to 0.35 in June 2022, suggesting a higher level of debt relative to its total assets. Subsequently, there was a significant jump to 0.54 in June 2023, indicating a continued increase in debt financing. However, by June 2024, the ratio further rose to 0.64, reflecting a higher proportion of debt compared to assets in the company's capital structure.
This trend indicates that Lumentum Holdings Inc has been relying more on debt to finance its operations and investments in recent years. While a higher debt-to-assets ratio may indicate increased financial risk due to the company's higher debt burden, it could also signify potential growth opportunities being pursued through additional leverage. It is essential for stakeholders to closely monitor this ratio to assess the company's financial health and debt management strategies in the context of its overall business performance.
Peer comparison
Jun 30, 2024