TE Connectivity Ltd (TEL)
Debt-to-equity 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-equity ratio | 0.31 | 0.30 | 0.33 | 0.36 | 0.32 |
September 30, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,529,000K ÷ $11,551,000K
= 0.31
TE Connectivity Ltd's debt-to-equity ratio has shown a fluctuating trend over the past five years. The ratio decreased from 0.36 in 2020 to 0.30 in 2022, indicating a reduction in debt relative to equity. However, in 2023, the ratio increased slightly to 0.31, suggesting a marginal increase in debt compared to equity compared to the previous year.
Overall, the company has maintained a relatively stable debt-to-equity ratio range between 0.30 and 0.36 over the last five years, which indicates a conservative approach towards financing its operations. A lower ratio signifies that the company relies less on debt financing and has a stronger equity position, which can be viewed positively by investors and creditors. The company's ability to manage its debt levels and maintain a healthy balance between debt and equity is crucial for its long-term financial stability and sustainability.
Peer comparison
Sep 30, 2023