TE Connectivity Ltd (TEL)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 23,071,000 | 21,712,000 | 21,701,000 | 21,490,000 | 21,353,000 | 20,782,000 | 21,348,000 | 21,451,000 | 21,409,000 | 21,462,000 | 21,058,000 | 20,967,000 | 20,266,000 | 19,242,000 | 18,840,000 | 19,367,000 | 19,976,000 | 19,694,000 | 19,748,000 | 19,262,000 |
| 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 |
| Financial leverage ratio | 1.76 | 1.88 | 1.89 | 1.93 | 1.86 | 1.91 | 2.03 | 2.03 | 1.92 | 2.00 | 2.07 | 2.14 | 2.03 | 2.03 | 2.08 | 2.14 | 1.89 | 1.86 | 1.86 | 1.93 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $23,071,000K ÷ $13,136,000K
= 1.76
The financial leverage ratio of TE Connectivity Ltd has shown a slightly fluctuating trend over the past several quarters, ranging from 1.76 to 2.14. This ratio measures the company's level of debt relative to its equity. A higher ratio indicates a higher level of debt compared to equity, suggesting higher financial risk and potential for greater financial distress in the event of economic downturns.
TE Connectivity Ltd's financial leverage ratio peaked at 2.14 in the first quarter of 2021, indicating a relatively high level of debt compared to equity at that time. Subsequently, the ratio has shown some variability but has generally remained above 1.86, with occasional peaks and troughs.
It is essential for investors and creditors to monitor the financial leverage ratio closely to assess the company's ability to meet its financial obligations and manage its debt levels effectively. If the ratio continues to increase significantly over time, it may signal potential difficulties in servicing debt and meeting financial obligations, which could impact the company's overall financial health and stability.
Peer comparison
Dec 31, 2023