TE Connectivity Ltd (TEL)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 12,486,000 | 11,551,000 | 10,897,000 | 10,748,000 | 9,495,000 |
| Debt-to-equity ratio | 0.27 | 0.31 | 0.30 | 0.33 | 0.36 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,332,000K ÷ $12,486,000K
= 0.27
TE Connectivity Ltd's debt-to-equity ratio has been showing a decreasing trend over the past five years, indicating a strengthening financial position in terms of leverage. The ratio decreased from 0.36 in September 2020 to 0.27 in September 2024, reflecting a reduction in the company's reliance on debt to finance its operations and growth. This suggests that TE Connectivity Ltd has been able to improve its equity base relative to debt, which could enhance its solvency and financial stability. The declining trend in the debt-to-equity ratio may signify effective management of debt levels and prudent financial decision-making by the company's management.
Peer comparison
Sep 30, 2024