Semtech Corporation (SMTC)

Debt-to-assets ratio

		Jan 31, 2025	Jan 31, 2024	Jan 28, 2024	Jan 31, 2023	Jan 29, 2023
Long-term debt	US$ in thousands	—	—	1,371,040	—	1,296,970
Total assets	US$ in thousands	1,419,260	1,373,740	1,373,740	2,569,630	2,569,630
Debt-to-assets ratio		0.00	0.00	1.00	0.00	0.50

January 31, 2025 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $1,419,260K
= 0.00

The debt-to-assets ratio for Semtech Corporation has shown fluctuation over the years based on the provided data. As of January 29, 2023, the ratio stood at 0.50, indicating that 50% of the company's assets were financed through debt. In the following year, as of January 31, 2023, the ratio dropped to 0.00, suggesting that the company had no debt relative to its assets.

However, there was a significant increase in the debt-to-assets ratio as of January 28, 2024, reaching 1.00, implying that the company's debt levels equaled its total assets. This could raise concerns about the company's financial leverage and ability to manage its debt obligations.

Fortunately, by January 31, 2024, the ratio reverted back to 0.00, indicating a strong balance sheet with no debt relative to assets. This improvement in the ratio reflects a healthier financial position for Semtech Corporation.

As of the most recent data point on January 31, 2025, the debt-to-assets ratio remained stable at 0.00, demonstrating that the company continues to maintain a debt-free stance in financing its operations with its own resources. Overall, while the company experienced fluctuations in its debt-to-assets ratio, it appears to have managed its leverage effectively and maintained a strong financial position in recent years.