Qualcomm Incorporated (QCOM)

Debt-to-capital ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	15,100,000	14,484,000	14,900,000	15,100,000	15,431,000	13,537,000	13,600,000	15,500,000	16,900,000	13,701,000	17,000,000	16,600,000	17,700,000	15,226,000	15,425,000	16,700,000	16,600,000	13,437,000	13,426,000	15,405,000
Total stockholders’ equity	US$ in thousands	23,058,000	21,581,000	20,670,000	19,698,000	18,810,000	18,013,000	16,048,000	13,328,000	11,333,000	9,950,000	8,177,000	7,424,000	7,380,000	6,077,000	3,306,000	3,045,000	4,513,000	4,909,000	5,463,000	3,866,000
Debt-to-capital ratio		0.40	0.40	0.42	0.43	0.45	0.43	0.46	0.54	0.60	0.58	0.68	0.69	0.71	0.71	0.82	0.85	0.79	0.73	0.71	0.80

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $15,100,000K ÷ ($15,100,000K + $23,058,000K)
= 0.40

The debt-to-capital ratio for Qualcomm Incorporated has exhibited some fluctuation over the past five years, with values ranging from 0.40 to 0.85. The trend shows that the ratio increased from 0.40 in December 2019 to peak at 0.85 in March 2020 before gradually declining to 0.40 as of December 2023.

A debt-to-capital ratio of 0.40 indicates that Qualcomm's debt accounts for 40% of its total capital, with the remaining 60% being equity. This suggests that the company has been managing its debt levels effectively and maintaining a relatively balanced capital structure throughout the period under review.

The decrease in the debt-to-capital ratio from 0.85 in March 2020 to 0.40 in December 2023 may signify Qualcomm's efforts to reduce its debt burden or increase its equity base. Overall, a lower debt-to-capital ratio is often viewed positively by investors as it indicates a lower financial risk and greater stability in the company's capital structure.