Qualcomm Incorporated (QCOM)

Financial leverage ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Total assets	US$ in thousands	51,040,000	49,014,000	41,240,000	35,594,000	32,957,000
Total stockholders’ equity	US$ in thousands	21,581,000	18,013,000	9,950,000	6,077,000	4,909,000
Financial leverage ratio		2.37	2.72	4.14	5.86	6.71

September 30, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $51,040,000K ÷ $21,581,000K
= 2.37

The financial leverage ratio of Qualcomm Incorporated has shown a decreasing trend over the last five years. The ratio was 6.71 in 2019, indicating that the company had substantial financial leverage at that time. However, this ratio has been steadily declining since then, reaching 2.37 in 2023.

A decreasing financial leverage ratio suggests that Qualcomm has been reducing its reliance on debt to finance its operations and growth. This can be a positive sign as it indicates a lower level of financial risk for the company. A lower financial leverage ratio generally means that Qualcomm is less vulnerable to economic downturns and fluctuations in interest rates.

Overall, the decreasing trend in Qualcomm's financial leverage ratio indicates a healthier financial structure and improved balance sheet strength over the years. Investors and stakeholders may view this positively as it signifies Qualcomm's ability to manage its debt levels effectively.