TE Connectivity Ltd (TEL)
Debt-to-capital ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 3,529,000 | 3,292,000 | 3,589,000 | 3,452,000 | 3,395,000 |
| Total stockholders’ equity | US$ in thousands | 11,551,000 | 10,897,000 | 10,748,000 | 9,495,000 | 10,570,000 |
| Debt-to-capital ratio | 0.23 | 0.23 | 0.25 | 0.27 | 0.24 |
September 30, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,529,000K ÷ ($3,529,000K + $11,551,000K)
= 0.23
TE Connectivity Ltd's debt-to-capital ratio has shown a relatively stable trend over the past five years, ranging between 0.23 and 0.27. The ratio calculates the proportion of total debt in relation to the total capital (a sum of total debt and total equity).
A decreasing trend in the debt-to-capital ratio indicates that the company is relying less on debt financing and more on equity funding, which can be seen as a positive sign of financial stability and lower financial risk. Conversely, an increasing trend may suggest a higher dependency on debt, potentially increasing financial risk.
TE Connectivity Ltd's consistent debt-to-capital ratio around the range of 0.23 to 0.27 indicates a balanced mix of debt and equity in its capital structure over the years, demonstrating prudent financial management practices. Further analysis would be needed to assess the specific implications for the company's financial health and risk profile.
Peer comparison
Sep 30, 2023