Lumentum Holdings Inc (LITE)
Debt-to-equity 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-equity ratio | 2.61 | 1.84 | 0.78 | 0.40 | 0.64 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,503,200K ÷ $957,300K
= 2.61
The debt-to-equity ratio of Lumentum Holdings Inc has shown a fluctuating trend over the past five years, indicating changes in the company's capital structure and financial leverage.
In 2020, the debt-to-equity ratio was relatively moderate at 0.64, suggesting a balanced mix of debt and equity financing. However, the ratio increased significantly to 0.40 in 2021, signaling a higher reliance on equity compared to debt for funding operations.
By 2022, there was a substantial surge in the debt-to-equity ratio to 0.78, indicating a shift towards greater debt utilization in the company's capital structure. This trend continued in 2023, with the ratio further increasing to 1.84, reflecting a significant rise in debt relative to equity.
The most recent data as of June 30, 2024, shows a debt-to-equity ratio of 2.61, indicating a substantial increase in leverage and a higher reliance on debt financing. This upsurge suggests that Lumentum Holdings Inc has significantly boosted its debt levels compared to equity to support its operations and investments.
Overall, the fluctuating trend in the debt-to-equity ratio of Lumentum Holdings Inc over the past five years highlights the evolving financial strategy of the company in terms of balancing debt and equity to support its growth and profitability objectives. It is crucial for stakeholders to closely monitor these changes to assess the company's financial health and risk profile.
Peer comparison
Jun 30, 2024