Semtech Corporation (SMTC)

Debt-to-capital ratio

		Jan 28, 2024	Jan 29, 2023	Jan 30, 2022	Jan 31, 2021	Jan 26, 2020
Long-term debt	US$ in thousands	1,371,040	1,296,970	171,676	179,195	194,743
Total stockholders’ equity	US$ in thousands	-307,434	755,852	737,584	698,743	676,954
Debt-to-capital ratio		1.29	0.63	0.19	0.20	0.22

January 28, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,371,040K ÷ ($1,371,040K + $-307,434K)
= 1.29

The debt-to-capital ratio of Semtech Corporation has shown a significant increase over the past five years. The ratio stood at 1.29 as of January 28, 2024, indicating that the company's level of debt relative to its total capital has risen sharply compared to previous years. This suggests that Semtech has taken on a higher level of debt in relation to its overall capital structure, which may raise concerns about the company's financial leverage and ability to manage debt obligations. It is crucial for stakeholders to monitor this trend closely to assess the company's financial risk and sustainability.