Qualcomm Incorporated (QCOM)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 21,581,000 | 18,013,000 | 9,950,000 | 6,077,000 | 4,909,000 |
| Debt-to-capital ratio | 0.40 | 0.43 | 0.58 | 0.71 | 0.73 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $14,484,000K ÷ ($14,484,000K + $21,581,000K)
= 0.40
Qualcomm Incorporated's debt-to-capital ratio has shown a declining trend over the past five years, decreasing from 0.73 in 2019 to 0.40 in 2023. This indicates an improvement in the company's ability to fund its operations through a combination of debt and equity. A lower debt-to-capital ratio suggests that Qualcomm's reliance on debt as a source of funding has decreased relative to its equity, which may indicate a lower financial risk for the company. The decreasing trend could be a reflection of Qualcomm's efforts to manage its debt levels and strengthen its financial position. However, it is important to note that a debt-to-capital ratio of 0.40 in 2023 still indicates that debt represents 40% of Qualcomm's capital structure, highlighting continued exposure to financial leverage.
Peer comparison
Sep 30, 2023