MaxLinear Inc (MXL)

Debt-to-equity 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-equity ratio		0.18	0.18	0.63	0.93	0.50

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $122,375K ÷ $686,265K
= 0.18

The debt-to-equity ratio of MaxLinear Inc has fluctuated over the past five years, indicating changes in its financial leverage. In 2019, the ratio was 0.50, suggesting that the company had a moderate level of debt relative to its equity. However, by 2020, the ratio increased to 0.93, indicating a substantial increase in the company's debt compared to its equity. This could imply increased financial risk and potential strain on the company's resources to meet its debt obligations.

Subsequently, there was a notable decrease in the ratio by 2021 to 0.63, reflecting a reduction in the company's debt relative to equity. This may signal a proactive effort by the company to deleverage and improve its financial position. The ratio remained consistent at 0.18 in both 2022 and 2023, indicating a sustainable balance between debt and equity.

Overall, the trend in MaxLinear Inc's debt-to-equity ratio reflects varying degrees of leverage and financial risk over the years, with recent years showing signs of improved financial stability and risk management.