Seagate Technology PLC (STX)
Debt-to-capital ratio
| Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,195,000 | 5,192,000 | 5,669,000 | 5,666,000 | 5,388,000 | 4,840,000 | 5,393,000 | 5,613,000 | 5,062,000 | 5,614,000 | 5,626,000 | 4,891,000 | 4,894,000 | 4,897,000 | 5,120,000 | 4,138,000 | 4,156,000 | 4,091,000 | 4,135,000 | 4,140,000 |
| Total stockholders’ equity | US$ in thousands | -1,491,000 | -1,889,000 | -1,814,000 | -1,702,000 | -1,199,000 | -1,004,000 | -470,000 | -351,000 | 109,000 | 421,000 | 526,000 | 601,000 | 631,000 | 484,000 | 990,000 | 1,821,000 | 1,787,000 | 1,792,000 | 1,830,000 | 1,770,000 |
| Debt-to-capital ratio | 1.40 | 1.57 | 1.47 | 1.43 | 1.29 | 1.26 | 1.10 | 1.07 | 0.98 | 0.93 | 0.91 | 0.89 | 0.89 | 0.91 | 0.84 | 0.69 | 0.70 | 0.70 | 0.69 | 0.70 |
June 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,195,000K ÷ ($5,195,000K + $-1,491,000K)
= 1.40
The debt-to-capital ratio of Seagate Technology PLC has shown some fluctuations over the past few quarters. The ratio was 1.40 as of June 30, 2024, indicating that 140% of the company's capital structure is made up of debt. This represents an increase from the previous quarter where the ratio was 1.57, suggesting a decrease in the relative level of debt compared to total capital.
Looking back over the past few years, there has been a general upward trend in the debt-to-capital ratio, with some fluctuations quarter by quarter. However, the ratio has generally remained above 1, indicating that the company relies more on debt financing compared to equity financing.
It is important to note that a higher debt-to-capital ratio can indicate higher financial risk and leverage for the company, as increased debt levels can lead to higher interest expenses and potential financial difficulties in meeting debt obligations. On the other hand, a lower ratio implies a stronger equity position and lower financial risk.
Overall, Seagate Technology PLC's debt-to-capital ratio analysis suggests that the company has been increasingly relying on debt financing in its capital structure, which may have implications for its financial health and risk profile.
Peer comparison
Jun 30, 2024