TE Connectivity Ltd (TEL)
Debt-to-assets ratio
| Sep 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,332,000 | 2,953,000 | 2,961,000 | 3,585,000 | 3,529,000 | 3,915,000 | 3,916,000 | 3,398,000 | 3,292,000 | 3,380,000 | 3,441,000 | 3,519,000 | 3,589,000 | 3,629,000 | 3,602,000 | 3,516,000 | 3,452,000 | 3,395,000 | 3,752,000 | 3,412,000 |
| Total assets | US$ in thousands | 22,854,000 | 22,898,000 | 22,824,000 | 23,071,000 | 21,712,000 | 21,701,000 | 21,490,000 | 21,353,000 | 20,782,000 | 21,348,000 | 21,451,000 | 21,409,000 | 21,462,000 | 21,058,000 | 20,967,000 | 20,266,000 | 19,242,000 | 18,840,000 | 19,367,000 | 19,976,000 |
| Debt-to-assets ratio | 0.15 | 0.13 | 0.13 | 0.16 | 0.16 | 0.18 | 0.18 | 0.16 | 0.16 | 0.16 | 0.16 | 0.16 | 0.17 | 0.17 | 0.17 | 0.17 | 0.18 | 0.18 | 0.19 | 0.17 |
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 exhibited some fluctuations over the past several quarters. The ratio has remained relatively stable around the 0.16 level throughout most of the period, indicating that the company carries a moderate level of debt relative to its total assets.
The ratio was at its lowest at 0.13 in June and March 2024 but increased slightly to 0.15 by September 2024. The highest ratio recorded was 0.19 in March 2020, while the lowest was 0.13 in June and March 2024. Overall, the trend suggests that TE Connectivity has been managing its debt levels effectively in relation to its asset base.
It is important to note that a lower debt-to-assets ratio implies a lower financial risk for the company, as a larger portion of its assets is financed through equity rather than debt. On the other hand, a higher ratio could indicate a higher level of financial leverage and potential risk.
In conclusion, based on the historical data provided, TE Connectivity Ltd's debt-to-assets ratio has been relatively stable with minor fluctuations, reflecting a moderate and manageable level of debt in relation to its total assets.
Peer comparison
Sep 30, 2024