MACOM Technology Solutions Holdings Inc (MTSI)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	1,126,340	947,600	842,748	471,736	300,146
Debt-to-capital ratio		0.28	0.32	0.40	0.51	0.68

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $448,281K ÷ ($448,281K + $1,126,340K)
= 0.28

The debt-to-capital ratio of MACOM Technology Solutions Holdings Inc has shown a decreasing trend over the past five years. In September 2020, the ratio was at its highest at 0.68, indicating that 68% of the company's capital was funded by debt. However, the ratio has steadily declined since then, reaching 0.28 in September 2024.

A decreasing debt-to-capital ratio suggests that the company has been reducing its reliance on debt financing in relation to its total capital structure. This can be seen as a positive sign as lower debt levels generally indicate lower financial risk and less exposure to fluctuations in interest rates.

The downward trend in the debt-to-capital ratio may indicate that MACOM Technology Solutions Holdings Inc has been focusing on deleveraging its balance sheet, potentially improving its financial health and stability. Investors and creditors may view this trend favorably as it signals improved financial strength and a more sustainable capital structure.