Seagate Technology PLC (STX)
Debt-to-equity ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,195,000 | 5,388,000 | 5,062,000 | 4,894,000 | 4,156,000 |
| Total stockholders’ equity | US$ in thousands | -1,491,000 | -1,199,000 | 109,000 | 631,000 | 1,787,000 |
| Debt-to-equity ratio | — | — | 46.44 | 7.76 | 2.33 |
June 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,195,000K ÷ $-1,491,000K
= —
The debt-to-equity ratio of Seagate Technology PLC has shown a significant increase over the past three years. In Jun 30, 2020, the ratio stood at 2.33, relatively moderate, indicating a balanced mix of debt and equity in the company's capital structure. However, by Jun 30, 2021, the ratio surged to 7.76, suggesting a substantial increase in debt relative to equity.
This upward trend continued into Jun 30, 2022, where the debt-to-equity ratio rose further to 46.44. Such a high ratio indicates that the company is relying more on debt financing compared to equity, which could potentially expose it to higher financial risk, especially in periods of economic uncertainty.
Unfortunately, the specific data for Jun 30, 2023, and Jun 30, 2024, are not available, making it difficult to assess whether the trend continued or if there was any improvement in the company's debt-to-equity position. It would be crucial for investors and stakeholders to monitor how Seagate Technology manages its debt levels and capital structure to ensure sustainable financial health and stability.
Peer comparison
Jun 30, 2024