MACOM Technology Solutions Holdings Inc (MTSI)

Debt-to-capital ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	448,281	447,994	447,707	447,421	447,134	446,848	566,743	566,332	565,920	565,509	565,097	564,686	492,097	488,043	492,173	650,931	652,172	652,947	653,722	654,497
Total stockholders’ equity	US$ in thousands	1,126,340	1,081,050	1,045,610	1,024,090	947,600	914,708	894,015	862,544	842,748	595,640	554,283	524,774	471,736	445,793	412,133	329,450	300,146	273,304	285,731	293,520
Debt-to-capital ratio		0.28	0.29	0.30	0.30	0.32	0.33	0.39	0.40	0.40	0.49	0.50	0.52	0.51	0.52	0.54	0.66	0.68	0.70	0.70	0.69

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 fluctuated over the time period provided. The ratio has ranged from 0.28 to 0.70, indicating the proportion of the company's total debt relative to its total capital.

A lower debt-to-capital ratio suggests that the company relies less on debt financing and has a stronger equity position. Conversely, a higher ratio implies a higher reliance on debt to fund its operations and investments.

Analyzing the trend, we observe an increase in the ratio from 0.28 in September 2024 to 0.70 in March 2022, reflecting a progressive shift towards higher debt utilization relative to capital. However, since March 2022, the ratio has fluctuated within a narrower range of 0.40 to 0.70.

It is essential to monitor changes in the debt-to-capital ratio over time as it provides insights into the company's capital structure, financial leverage, and risk profile. Investors and analysts should assess whether the current level of debt is sustainable and in line with the company's overall financial strategy and risk tolerance.