TE Connectivity Ltd (TEL)
Debt-to-equity 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-equity ratio | 0.27 | 0.31 | 0.34 | 0.35 | 0.30 | 0.30 | 0.32 | 0.33 | 0.32 | 0.33 | 0.36 | 0.37 | 0.35 | 0.36 | 0.38 | 0.41 | 0.32 | 0.32 | 0.32 | 0.34 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,585,000K ÷ $13,136,000K
= 0.27
The debt-to-equity ratio of TE Connectivity Ltd has shown a fluctuating trend over the past five years, ranging from 0.27 to 0.41. The ratio indicates the proportion of the company's debt to its equity, with a lower ratio suggesting a lower reliance on debt for financing.
TE Connectivity's debt-to-equity ratio has generally been within a reasonable range, reflecting a balanced mix of debt and equity in its capital structure. However, the ratio has slightly increased in recent quarters, reaching 0.41 as of March 31, 2020. This uptick may indicate a greater reliance on debt financing or a decline in equity levels during that period.
Overall, TE Connectivity's debt-to-equity ratio analysis suggests that the company has maintained a prudent approach to managing its capital structure, but investors and analysts may want to monitor any further shifts in the ratio to assess the company's future financial stability and risk management.
Peer comparison
Dec 31, 2023