MACOM Technology Solutions Holdings Inc (MTSI)

Debt-to-equity 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-equity ratio		0.40	0.47	0.67	1.04	2.17

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $448,281K ÷ $1,126,340K
= 0.40

The debt-to-equity ratio of MACOM Technology Solutions Holdings Inc has been steadily decreasing over the past five years, indicating a positive trend in the company's financial leverage. In 2020, the ratio stood at 2.17, reflecting a higher level of debt relative to equity. However, there has been a significant improvement since then, with the ratio decreasing to 0.40 as of September 30, 2024.

The declining trend in the debt-to-equity ratio suggests that MACOM Technology Solutions Holdings Inc has been reducing its reliance on debt financing and/or increasing its equity base. A lower debt-to-equity ratio generally indicates a lower financial risk and higher solvency for the company. It also implies that the company may have a stronger ability to cover its debt obligations and potential financial difficulties.

Overall, the decreasing debt-to-equity ratio for MACOM Technology Solutions Holdings Inc is a positive sign, as it indicates a healthier balance between debt and equity in the company's capital structure over the years.