Qualcomm Incorporated (QCOM)

Debt-to-assets ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	14,484,000	13,537,000	13,701,000	15,226,000	13,437,000
Total assets	US$ in thousands	51,040,000	49,014,000	41,240,000	35,594,000	32,957,000
Debt-to-assets ratio		0.28	0.28	0.33	0.43	0.41

September 30, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $14,484,000K ÷ $51,040,000K
= 0.28

The debt-to-assets ratio of Qualcomm Incorporated has shown a decreasing trend over the five-year period from 2019 to 2023, indicating an improvement in the company's financial leverage and solvency. In 2019, the ratio was 0.41, which then decreased to 0.43 in 2020, followed by a steady decline to 0.33 in 2021, and remaining constant at 0.28 in both 2022 and 2023.

A lower debt-to-assets ratio suggests that Qualcomm has been successful in reducing its reliance on debt to finance its assets, which can be viewed positively by investors and creditors. This trend may indicate a stronger financial position and lower risk of financial distress for the company. It also reflects Qualcomm's ability to generate sufficient earnings and cash flow to support its operations and investments without excessive debt burden.

Overall, the consistent decline in Qualcomm's debt-to-assets ratio over the period signifies prudent financial management and a healthier balance sheet structure, reflecting positively on the company's financial health and stability.