TE Connectivity Ltd (TEL)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 22,854,000 | 22,898,000 | 22,824,000 | 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 |
| 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 |
| Financial leverage ratio | 1.83 | 1.80 | 1.83 | 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 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,854,000K ÷ $12,486,000K
= 1.83
TE Connectivity Ltd's financial leverage ratio has fluctuated over the past few years, ranging from a low of 1.76 to a high of 2.14. The financial leverage ratio measures the company's level of debt relative to its equity, indicating the proportion of assets financed by debt.
A financial leverage ratio above 1 suggests that the company relies more on debt financing rather than equity. TE Connectivity's financial leverage ratio has generally been above 1, indicating a higher reliance on debt to finance its operations and investments.
The trend in the financial leverage ratio shows some volatility, with fluctuations observed over the periods analyzed. Higher values of the financial leverage ratio indicate increased financial risk due to higher debt levels.
It is important for investors and stakeholders to closely monitor the financial leverage ratio of TE Connectivity Ltd, as high levels of debt could potentially lead to financial challenges, especially in times of economic downturns or increased interest rates.
Peer comparison
Sep 30, 2024