TE Connectivity Ltd (TEL)
Debt-to-capital ratio
| 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 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 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 | 3,395,000 | 3,434,000 | 3,370,000 |
| Total stockholders’ equity | US$ in thousands | 13,136,000 | 11,551,000 | 11,456,000 | 11,126,000 | 11,468,000 | 10,897,000 | 10,537,000 | 10,549,000 | 11,128,000 | 10,748,000 | 10,162,000 | 9,783,000 | 9,979,000 | 9,495,000 | 9,036,000 | 9,066,000 | 10,557,000 | 10,570,000 | 10,622,000 | 9,994,000 |
| Debt-to-capital ratio | 0.21 | 0.23 | 0.25 | 0.26 | 0.23 | 0.23 | 0.24 | 0.25 | 0.24 | 0.25 | 0.26 | 0.27 | 0.26 | 0.27 | 0.27 | 0.29 | 0.24 | 0.24 | 0.24 | 0.25 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,585,000K ÷ ($3,585,000K + $13,136,000K)
= 0.21
The debt-to-capital ratio of TE Connectivity Ltd has exhibited a fluctuating trend over the past several quarters. The ratio has ranged from 0.21 to 0.29 during the period from Dec 31, 2019, to Dec 31, 2023. The ratio indicates the proportion of a company's capital that is financed through debt, with a lower ratio suggesting lower financial risk due to less reliance on debt financing.
TE Connectivity’s debt-to-capital ratio has generally been within a moderate range, with a peak of 0.29 in Mar 31, 2020 and a trough of 0.21 in Dec 31, 2023. The company's ratio has shown a slight upward trend from the end of 2021 to the first quarter of 2023, reaching a peak at 0.29, but has since decreased to 0.21 by the end of 2023.
It is important for stakeholders to monitor the company's debt-to-capital ratio over time to assess its leverage and financial stability, as a significant increase in the ratio could indicate heightened financial risk. Overall, TE Connectivity Ltd's debt-to-capital ratio has shown variability but has generally remained within a manageable range, reflecting a balanced approach to capital structure management.
Peer comparison
Dec 31, 2023