Semtech Corporation (SMTC)

Debt-to-capital ratio

		Jan 31, 2025	Oct 31, 2024	Jul 31, 2024	Apr 30, 2024	Jan 31, 2024	Jan 28, 2024	Oct 31, 2023	Oct 29, 2023	Jul 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 31, 2023	Jan 29, 2023	Oct 31, 2022	Oct 30, 2022	Jul 31, 2022	May 1, 2022	Apr 30, 2022	Jan 31, 2022	Jan 30, 2022
Long-term debt	US$ in thousands	—	—	—	—	—	1,371,040	—	1,373,620	—	1,330,610	—	—	1,296,970	—	455,113	—	181,797	—	—	171,676
Total stockholders’ equity	US$ in thousands	542,400	-46,791	-141,437	-313,098	-307,434	-307,434	334,261	334,261	366,835	366,835	733,028	755,852	755,852	792,412	792,412	798,858	734,983	734,983	737,584	737,584
Debt-to-capital ratio		0.00	—	—	—	—	1.29	0.00	0.80	0.00	0.78	0.00	0.00	0.63	0.00	0.36	0.00	0.20	0.00	0.00	0.19

January 31, 2025 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $542,400K)
= 0.00

The debt-to-capital ratio fluctuated over the past few years for Semtech Corporation, based on the provided data. In January 2022, the ratio stood at 0.19, indicating that 19% of the company's capital structure was funded by debt. Subsequently, in May 2022 and July 2022, the ratio dropped to 0.00, suggesting either a decrease in debt or an increase in capital. However, by October 2022, the ratio rose sharply to 0.36, signaling a higher proportion of debt in the capital structure.

The trend continued with a significant increase in the debt-to-capital ratio to 0.63 in January 2023, followed by a further spike to 0.78 in July 2023 and 0.80 in October 2023. These values indicate a substantial reliance on debt to finance the company's operations and investments during these periods.

The ratio experienced a peak at 1.29 in January 2024, which may raise concerns about the company's financial leverage. Interestingly, the data shows that the debt-to-capital ratio was not reported or zero in the subsequent periods, from January 2024 to January 2025.

Overall, the fluctuations in Semtech Corporation's debt-to-capital ratio suggest varying levels of debt utilization to fund its operations and investments during the analyzed periods. Monitoring this ratio over time can provide insights into the company's capital structure decisions and financial risk management strategies.