Qualcomm Incorporated (QCOM)

Debt-to-equity 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-equity ratio		0.67	0.75	1.38	2.51	2.74

September 30, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $14,484,000K ÷ $21,581,000K
= 0.67

Qualcomm's debt-to-equity ratio has shown a decreasing trend over the past five years, indicating an improvement in the company's financial leverage. In 2019 and 2020, the ratio was relatively high at 2.74 and 2.51, respectively, suggesting that Qualcomm relied more on debt to finance its operations compared to equity.

However, in subsequent years, the ratio decreased to 1.38 in 2021, 0.75 in 2022, and 0.67 in 2023. This downward trend reflects a reduction in Qualcomm's reliance on debt financing and a strengthening of its financial position in terms of capital structure.

A lower debt-to-equity ratio typically indicates lower financial risk and greater solvency for a company. Qualcomm's declining ratio suggests that the company has been able to manage its debt levels effectively and is moving towards a more balanced mix of debt and equity in its financing structure.