MACOM Technology Solutions Holdings Inc (MTSI)

Financial leverage ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Total assets	US$ in thousands	1,755,640	1,553,240	1,571,820	1,134,140	1,146,430
Total stockholders’ equity	US$ in thousands	1,126,340	947,600	842,748	471,736	300,146
Financial leverage ratio		1.56	1.64	1.87	2.40	3.82

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,755,640K ÷ $1,126,340K
= 1.56

The financial leverage ratio of MACOM Technology Solutions Holdings Inc has exhibited a declining trend over the past five years, decreasing from 3.82 in 2020 to 1.56 in 2024. This indicates a reduction in the company's reliance on debt to finance its operations and assets. A lower financial leverage ratio suggests that a company has a lower level of debt relative to its equity, which can be viewed positively by investors and creditors as it signifies lower financial risk and potentially greater financial stability. MACOM's decreasing trend in financial leverage ratio may indicate a strategic shift towards a more conservative capital structure and an improved balance sheet position. However, it is important to conduct a more in-depth analysis of the company's capital structure and debt management policies to fully assess the implications of this trend.