Semtech Corporation (SMTC)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	-307,434	334,261	366,835	733,028	755,852	792,412	798,858	734,983	737,584	718,194	708,417	704,277	698,743	676,391	677,493	661,474	676,954	688,721	689,540	695,226
Debt-to-capital ratio		1.29	0.80	0.78	0.65	0.63	0.36	0.18	0.20	0.19	0.20	0.20	0.20	0.20	0.21	0.22	0.22	0.22	0.21	0.21	0.21

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 fluctuated over the past several quarters. The ratio was relatively high at 1.29 in January 28, 2024, indicating that a significant portion of the company's capital structure was financed by debt at that time. Subsequently, the ratio decreased to 0.80 in October 29, 2023, and further declined to 0.78 in July 30, 2023. This downward trend suggests a reduction in the company's reliance on debt financing compared to its total capital.

Prior to the period of higher ratios, the debt-to-capital ratio had ranged around 0.20 to 0.22 from January 31, 2021, to April 26, 2020. This period of consistent lower ratios indicates a more balanced capital structure with a smaller proportion of debt relative to overall capital.

It is worth noting that the ratio has shown some variation but has generally remained within a manageable range, reflecting the company's ability to effectively manage its debt obligations in relation to its total capital. The decreasing trend in recent quarters may indicate a strategic shift towards utilizing less debt and potentially improving financial stability and flexibility for Semtech Corporation.