MaxLinear Inc (MXL)

Debt-to-equity ratio

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Long-term debt US$ in thousands 122,996 122,375 121,757 306,153 363,592
Total stockholders’ equity US$ in thousands 516,283 686,265 676,385 489,198 391,117
Debt-to-equity ratio 0.24 0.18 0.18 0.63 0.93

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $122,996K ÷ $516,283K
= 0.24

MaxLinear Inc's debt-to-equity ratio has shown a decreasing trend over the years, indicating a strengthening financial position. Starting at 0.93 on December 31, 2020, the ratio decreased to 0.63 by December 31, 2021, and further dropped to 0.18 by December 31, 2022, where it remained stable through December 31, 2023. However, by the end of December 31, 2024, there was a slight increase to 0.24.

The decreasing trend in the debt-to-equity ratio suggests that the company is relying less on debt financing in relation to equity, which could imply improved financial stability and lower financial risk. However, the slight increase in the ratio in 2024 may warrant further monitoring to ensure that the company's debt levels remain sustainable and balanced with its equity position.