MaxLinear Inc (MXL)

Debt-to-capital ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	122,375	121,757	306,153	363,592	206,909
Total stockholders’ equity	US$ in thousands	686,265	676,385	489,198	391,117	414,920
Debt-to-capital ratio		0.15	0.15	0.38	0.48	0.33

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $122,375K ÷ ($122,375K + $686,265K)
= 0.15

The debt-to-capital ratio of MaxLinear Inc has shown consistent improvement over the past five years, decreasing from 0.48 in 2020 to 0.15 in 2023. This ratio indicates the proportion of the company's capital that is financed through debt, with a lower ratio generally considered more favorable as it suggests lower financial risk. The decreasing trend in the debt-to-capital ratio reflects a reduction in the reliance on debt financing relative to total capital, potentially signaling improved financial stability and a more sustainable capital structure. It is worth noting that this trend may indicate effective management of liabilities and a strengthened balance sheet, which could enhance the company's financial flexibility and resilience. Overall, the declining debt-to-capital ratio suggests a positive trajectory in MaxLinear Inc's capital structure and financial risk management.