MACOM Technology Solutions Holdings Inc (MTSI)

Financial leverage 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
Total assets	US$ in thousands	1,755,640	1,705,210	1,676,390	1,650,800	1,553,240	1,642,710	1,617,470	1,587,710	1,571,820	1,333,070	1,286,490	1,260,120	1,134,140	1,100,110	1,068,400	1,153,680	1,146,430	1,121,130	1,112,800	1,132,210
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
Financial leverage ratio		1.56	1.58	1.60	1.61	1.64	1.80	1.81	1.84	1.87	2.24	2.32	2.40	2.40	2.47	2.59	3.50	3.82	4.10	3.89	3.86

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 been fluctuating over the past few quarters. The ratio indicates how much of the company's assets are financed through debt compared to equity. From December 2019 to June 2020, the ratio increased steadily, reaching a peak of 4.10 in March 2020. This rapid increase in leverage suggests that the company was relying more heavily on debt to finance its operations during that period.

However, from September 2020 onwards, the financial leverage ratio started to decline gradually, indicating a decrease in reliance on debt financing. The ratio reached a low of 1.56 in September 2024, which may suggest that the company has been reducing its debt levels relative to its equity.

Overall, the trend in the financial leverage ratio of MACOM Technology Solutions Holdings Inc shows a period of high leverage followed by a more recent period of deleveraging. This could indicate a shift towards a more balanced capital structure or a strategy to reduce financial risk in the company's operations.