TE Connectivity Ltd (TEL)
Debt-to-equity 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-equity ratio | 0.27 | 0.23 | 0.24 | 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 |
September 30, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,332,000K ÷ $12,486,000K
= 0.27
The debt-to-equity ratio for TE Connectivity Ltd has exhibited fluctuation over the past few years, ranging from 0.23 to 0.41. The ratio provides insight into the company's financial structure by comparing its debt levels to its equity. A lower ratio typically indicates lower financial risk and higher solvency, as more of the company's assets are financed through equity rather than debt.
From the data provided, we can observe that the debt-to-equity ratio has generally decreased from 0.41 in Q1 2020 to 0.27 in Q3 2024. This downward trend suggests that the company has been reducing its reliance on debt over the years, potentially improving its financial health and stability. However, it is important to note that the ratio has shown some minor fluctuations within this overall decreasing trend.
Overall, the decreasing trend in TE Connectivity Ltd's debt-to-equity ratio reflects a positive development in terms of its capital structure and financial risk management. This could indicate prudent financial decision-making and effective utilization of equity financing to support the company's operations and growth.
Peer comparison
Sep 30, 2024