Qualcomm Incorporated (QCOM)
Financial leverage ratio
| Sep 30, 2024 | Jun 23, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 55,154,000 | 52,741,000 | 53,167,000 | 52,135,000 | 51,040,000 | 49,002,000 | 48,362,000 | 50,014,000 | 49,014,000 | 47,020,000 | 44,302,000 | 42,820,000 | 41,240,000 | 38,769,000 | 37,168,000 | 37,479,000 | 35,594,000 | 32,328,000 | 31,938,000 | 33,111,000 |
| Total stockholders’ equity | US$ in thousands | 26,274,000 | 24,670,000 | 24,469,000 | 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 |
| Financial leverage ratio | 2.10 | 2.14 | 2.17 | 2.26 | 2.37 | 2.37 | 2.46 | 2.66 | 2.72 | 2.93 | 3.32 | 3.78 | 4.14 | 4.74 | 5.01 | 5.08 | 5.86 | 9.78 | 10.49 | 7.34 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $55,154,000K ÷ $26,274,000K
= 2.10
The financial leverage ratio of Qualcomm Incorporated has shown a generally increasing trend over the past few years. The ratio measures the company's use of debt to finance its operations and growth. A higher financial leverage ratio indicates that a company relies more on debt to fund its operations, which can potentially lead to higher financial risk.
From December 2019 to September 2022, the financial leverage ratio steadily increased from 7.34 to 2.93, reflecting a significant increase in debt usage during this period. However, from September 2022 to March 2023, the ratio spiked to 3.32 and continued to rise to 5.86 by December 2023, indicating a rapid increase in debt relative to equity.
The financial leverage ratio peaked at 10.49 in June 2020, before gradually declining to 2.10 by September 2024. This decrease suggests Qualcomm may have taken measures to reduce its reliance on debt financing or improved its financial position over time.
Overall, the trend in Qualcomm's financial leverage ratio demonstrates fluctuations in the company's debt structure and capital mix. Investors and stakeholders should monitor this ratio to assess Qualcomm's financial risk and leverage position effectively.
Peer comparison
Sep 30, 2024