Semtech Corporation (SMTC)

Debt-to-equity 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-equity ratio		—	1.72	0.23	0.26	0.29

January 28, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,371,040K ÷ $-307,434K
= —

The debt-to-equity ratio of Semtech Corporation has exhibited a fluctuating trend over the past five years. The ratio was not available for Jan 28, 2024, however, as of Jan 29, 2023, the company had a debt-to-equity ratio of 1.72, indicating a higher reliance on debt financing compared to equity. This substantial increase in leverage from the prior year suggests that Semtech may have taken on more debt to support its operations or growth initiatives.

In contrast, the debt-to-equity ratio significantly decreased to 0.23 as of Jan 30, 2022, and further to 0.26 as of Jan 31, 2021, indicating a much lower proportion of debt relative to equity in the company's capital structure. This reduction in leverage may have been due to efforts to pay down debt, improve financial stability, or optimize the capital mix of the company.

The ratio increased slightly to 0.29 as of Jan 26, 2020, signaling a slight uptick in debt relative to equity, although still lower compared to the previous year. It is important to note that a lower debt-to-equity ratio generally indicates lower financial risk and can be viewed favorably by investors and lenders.

Overall, Semtech Corporation's debt-to-equity ratio has shown variability over the past five years, with the company experiencing fluctuations in its leverage position. Further analysis of the company's financial performance, profitability, and cash flow would be necessary to fully understand the implications of these changes in the debt-to-equity ratio.