MACOM Technology Solutions Holdings Inc (MTSI)

Debt-to-equity 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-equity ratio		0.40	0.41	0.43	0.44	0.47	0.49	0.63	0.66	0.67	0.95	1.02	1.08	1.04	1.09	1.19	1.98	2.17	2.39	2.29	2.23

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 shown a fluctuating trend over the past few quarters. The ratio has been declining from 2.39 in March 2020 to 0.40 in September 2024, indicating a reduction in the company's reliance on debt relative to equity.

A lower debt-to-equity ratio suggests that the company is using less debt financing compared to equity, which can be viewed positively as it reduces the financial risk associated with high levels of debt. It shows that the company may have a stronger financial position and may be better positioned to weather economic downturns or unexpected challenges.

Overall, the decreasing trend in MACOM Technology Solutions Holdings Inc's debt-to-equity ratio implies a more conservative financing structure and potential financial stability, which can be favorable for investors and stakeholders.