Sensata Technologies Holding NV (ST)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	3,373,990	3,771,810	3,770,510	3,768,630	3,958,930	4,208,670	4,213,510	4,215,500	4,214,950	4,214,390	4,213,830	3,961,400	3,213,750	3,963,080	3,220,830	3,220,360	3,219,880	3,219,410	3,216,140	3,216,730
Total stockholders’ equity	US$ in thousands	2,996,280	3,225,180	3,209,770	3,193,490	3,110,810	3,069,320	3,023,580	3,072,320	3,094,730	3,009,620	2,913,450	2,790,640	2,705,490	2,574,640	2,493,400	2,537,800	2,573,760	2,602,890	2,617,060	2,564,370
Debt-to-equity ratio		1.13	1.17	1.17	1.18	1.27	1.37	1.39	1.37	1.36	1.40	1.45	1.42	1.19	1.54	1.29	1.27	1.25	1.24	1.23	1.25

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,373,990K ÷ $2,996,280K
= 1.13

The debt-to-equity ratio of Sensata Technologies Holding Plc has exhibited a fluctuating trend over the past eight quarters. In Q4 2023, the ratio stood at 1.13, showing a slight decrease compared to the previous quarter. This suggests that the company relied less on debt financing relative to its equity in the most recent period.

Although the ratio has shown some variability, overall, it has remained within a relatively narrow range between 1.13 and 1.40 over the past two years. This indicates a consistent reliance on debt to finance the company's operations and growth initiatives.

It is important to note that a higher debt-to-equity ratio may indicate higher financial risk due to increased leverage, which could lead to potential challenges in meeting debt obligations. Conversely, a lower ratio may suggest a more conservative financial structure with lower risk but possibly slower growth.

Further analysis of the company's financial health, cash flow position, and overall business strategy would be needed to fully assess the implications of Sensata Technologies Holding Plc's debt-to-equity ratio on its financial performance and long-term sustainability.