TE Connectivity Ltd (TEL)
Debt-to-assets ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,332,000 | 3,529,000 | 3,292,000 | 3,589,000 | 3,452,000 |
| Total assets | US$ in thousands | 22,854,000 | 21,712,000 | 20,782,000 | 21,462,000 | 19,242,000 |
| Debt-to-assets ratio | 0.15 | 0.16 | 0.16 | 0.17 | 0.18 |
September 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $3,332,000K ÷ $22,854,000K
= 0.15
TE Connectivity Ltd's debt-to-assets ratio has shown a decreasing trend over the past five years, declining from 0.18 in 2020 to 0.15 in 2024. This indicates that the company has been effectively managing its level of debt in relation to its total assets. A lower debt-to-assets ratio suggests that the company relies less on debt financing and has a stronger financial position.
The decreasing trend in the debt-to-assets ratio could be a positive sign of improved financial health, as it may reflect a reduction in debt levels or an increase in asset values. However, it is important to consider the specific circumstances and industry dynamics of TE Connectivity Ltd to understand the implications of this trend fully.
Overall, a declining debt-to-assets ratio indicates that TE Connectivity Ltd has been successful in maintaining a more conservative debt structure, which could enhance its financial stability and ability to weather economic uncertainties.
Peer comparison
Sep 30, 2024