MACOM Technology Solutions Holdings Inc (MTSI)

Debt-to-assets ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	448,281	447,134	565,920	492,097	652,172
Total assets	US$ in thousands	1,755,640	1,553,240	1,571,820	1,134,140	1,146,430
Debt-to-assets ratio		0.26	0.29	0.36	0.43	0.57

September 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $448,281K ÷ $1,755,640K
= 0.26

The debt-to-assets ratio of MACOM Technology Solutions Holdings Inc has displayed a declining trend over the past five years. As of September 30, 2024, the ratio stood at 0.26, indicating that the company had $0.26 in debt for every dollar of assets. This represents an improvement from the previous years, where the ratios were 0.29 in 2023, 0.36 in 2022, 0.43 in 2021, and 0.57 in 2020.

A decreasing debt-to-assets ratio suggests that MACOM Technology Solutions Holdings Inc has been reducing its reliance on debt financing relative to its total assets. This can be viewed positively by investors and creditors as it indicates a stronger financial position and lower financial risk for the company. Additionally, a lower debt-to-assets ratio may suggest improved financial stability and flexibility for the company in managing its obligations and pursuing growth opportunities.

Overall, the decreasing trend in the debt-to-assets ratio of MACOM Technology Solutions Holdings Inc over the past five years suggests a more conservative approach towards debt management and a potential strengthening of the company's financial health.