Semtech Corporation (SMTC)

Debt-to-assets ratio

		Jan 28, 2024	Oct 29, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 25, 2020	Jul 26, 2020	Apr 26, 2020	Jan 26, 2020	Oct 27, 2019	Jul 28, 2019	Apr 28, 2019
Long-term debt	US$ in thousands	1,371,040	1,373,620	1,330,610	1,336,640	1,296,970	455,113	171,917	181,797	171,676	175,556	175,436	175,316	179,195	183,075	186,955	190,840	194,743	179,111	183,692	188,270
Total assets	US$ in thousands	1,373,740	2,038,130	2,118,600	2,500,020	2,569,630	1,466,850	1,199,830	1,115,920	1,130,910	1,121,300	1,100,000	1,069,620	1,082,100	1,047,970	1,054,030	1,023,350	1,052,430	1,039,140	1,056,310	1,053,410
Debt-to-assets ratio		1.00	0.67	0.63	0.53	0.50	0.31	0.14	0.16	0.15	0.16	0.16	0.16	0.17	0.17	0.18	0.19	0.19	0.17	0.17	0.18

January 28, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,371,040K ÷ $1,373,740K
= 1.00

The debt-to-assets ratio of Semtech Corporation has exhibited fluctuations over the past several quarters. As of the latest reporting date on January 28, 2024, the ratio stood at 1.00, indicating that the company's total debt was equal to its total assets. This could be a cause for concern as a ratio of 1.00 suggests a high level of leverage and financial risk.

Looking at historical trends, the ratio has generally been on a downward trajectory since April 2020, when it was at 0.19. This decline suggests that Semtech has been reducing its debt relative to its assets over the past few years. However, it is worth noting that there was a significant increase in the ratio from 0.31 in October 2022 to 1.00 in January 2024, which indicates a substantial increase in debt relative to assets during this period.

Overall, while Semtech has made efforts to decrease its debt-to-assets ratio in recent years, the sharp increase in the most recent quarter raises questions about the company's debt management strategies and potential future financial stability. Further analysis and monitoring of Semtech's debt levels and asset management practices are advisable to understand the underlying reasons for these fluctuations and to assess the company's overall financial health.