Qualcomm Incorporated (QCOM)

Debt-to-equity ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Long-term debt	US$ in thousands	13,270,000	14,484,000	13,537,000	13,701,000	15,226,000
Total stockholders’ equity	US$ in thousands	26,274,000	21,581,000	18,013,000	9,950,000	6,077,000
Debt-to-equity ratio		0.51	0.67	0.75	1.38	2.51

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $13,270,000K ÷ $26,274,000K
= 0.51

The debt-to-equity ratio of Qualcomm Incorporated has exhibited a declining trend over the past five years, indicating an improvement in the company's capital structure. As of September 30, 2024, the debt-to-equity ratio stands at 0.51, suggesting that Qualcomm is relying less on debt financing and more on equity to fund its operations and investments. This lower ratio indicates a lower level of financial risk for the company as compared to the previous years.

The decreasing trend in the debt-to-equity ratio from 2.51 in 2020 to 0.51 in 2024 showcases Qualcomm's efforts to reduce its debt levels and strengthen its financial stability. This progression signifies that the company has been successful in managing its debt obligations while maintaining a healthy balance between debt and equity in its capital structure.

Overall, the declining debt-to-equity ratio of Qualcomm Incorporated indicates a positive shift towards a more balanced and sustainable financial position, reflecting prudent financial management and strategic decision-making by the company's management.