TE Connectivity Ltd (TEL)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 12,486,000 | 12,755,000 | 12,449,000 | 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 |
| Debt-to-capital ratio | 0.21 | 0.19 | 0.19 | 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 |
September 30, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,332,000K ÷ ($3,332,000K + $12,486,000K)
= 0.21
TE Connectivity Ltd's debt-to-capital ratio has shown variability over the past few years, ranging from 0.19 to 0.29. The ratio measures the proportion of the company's capital that is financed by debt. A lower ratio indicates a lower level of debt relative to capital, which may imply lower financial risk and greater financial stability.
TE Connectivity Ltd's debt-to-capital ratio decreased from 0.29 in December 2019 to 0.19 in June 2024, before slightly increasing to 0.21 in September 2024. This downward trend suggests that the company has been reducing its reliance on debt financing relative to its capital base.
It is important to note that the optimal debt-to-capital ratio can vary by industry and company, and it is essential for TE Connectivity Ltd to carefully manage its debt levels to maintain a healthy balance between debt and equity in order to support its growth and financial health in the long term.
Peer comparison
Sep 30, 2024