TE Connectivity Ltd (TEL)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 22,854,000 | 21,712,000 | 20,782,000 | 21,462,000 | 19,242,000 |
| Total stockholders’ equity | US$ in thousands | 12,486,000 | 11,551,000 | 10,897,000 | 10,748,000 | 9,495,000 |
| Financial leverage ratio | 1.83 | 1.88 | 1.91 | 2.00 | 2.03 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,854,000K ÷ $12,486,000K
= 1.83
The financial leverage ratio of TE Connectivity Ltd has shown a decreasing trend over the past five years. The ratio decreased from 2.03 in 2020 to 1.83 in 2024. This indicates that the company has been relying less on debt financing relative to equity financing over this period. A lower financial leverage ratio suggests a lower level of financial risk and implies that the company is less dependent on debt to finance its operations and growth. Overall, this downward trend in the financial leverage ratio may signify improved financial stability and a stronger capital structure for TE Connectivity Ltd.
Peer comparison
Sep 30, 2024