Lumentum Holdings Inc (LITE)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 957,300 | 1,355,800 | 1,875,000 | 1,972,800 | 1,749,200 |
| Debt-to-capital ratio | 0.72 | 0.65 | 0.44 | 0.29 | 0.39 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,503,200K ÷ ($2,503,200K + $957,300K)
= 0.72
The debt-to-capital ratio of Lumentum Holdings Inc has exhibited a fluctuating trend over the past five years. The ratio increased from 0.39 in 2020 to 0.72 in 2024. This suggests that the proportion of debt used by the company to finance its operations relative to its total capital has been increasing. A higher debt-to-capital ratio may indicate a higher level of financial leverage and potential risk, as the company relies more on debt financing. It is important to monitor this trend closely to assess the company's ability to manage its debt obligations and maintain a healthy capital structure.
Peer comparison
Jun 30, 2024