Wolfspeed Inc (WOLF)
Debt-to-assets ratio
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 6,161,100 | 4,175,100 | 1,021,600 | 823,900 | 783,800 |
| Total assets | US$ in thousands | 7,984,600 | 6,586,700 | 3,917,500 | 3,446,800 | 3,231,000 |
| Debt-to-assets ratio | 0.77 | 0.63 | 0.26 | 0.24 | 0.24 |
June 30, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $6,161,100K ÷ $7,984,600K
= 0.77
The debt-to-assets ratio of Wolfspeed Inc has shown a consistent upward trend over the past five years, increasing from 0.24 in 2020 to 0.77 in 2024. This indicates that the company's reliance on debt to finance its assets has been steadily rising.
A high debt-to-assets ratio, such as the 0.77 ratio in 2024, suggests that the company is financing a significant portion of its assets through debt rather than equity. This may indicate higher financial leverage and risk for the company, as the higher the ratio, the more exposed the company is to fluctuations in interest rates and potential financial distress.
It is important for investors and stakeholders to monitor this ratio closely as a continuously increasing trend could potentially signal challenges in debt repayment and overall financial health if not managed appropriately.
Peer comparison
Jun 30, 2024