Wolfspeed Inc (WOLF)

Debt-to-assets ratio

		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	Sep 30, 2019
Long-term debt	US$ in thousands	6,161,100	5,664,300	5,167,600	5,159,400	4,175,100	3,023,300	3,021,000	1,300,800	1,021,600	1,008,400	453,900	834,400	823,900	813,700	803,500	793,600	783,800	486,300	480,500	474,700
Total assets	US$ in thousands	7,984,600	7,696,200	7,290,200	7,312,800	6,586,700	5,454,700	5,342,900	3,858,500	3,917,500	3,752,700	3,216,900	3,248,800	3,446,800	3,507,700	3,124,900	3,123,300	3,231,000	2,737,900	2,782,800	2,796,600
Debt-to-assets ratio		0.77	0.74	0.71	0.71	0.63	0.55	0.57	0.34	0.26	0.27	0.14	0.26	0.24	0.23	0.26	0.25	0.24	0.18	0.17	0.17

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 been fluctuating over the past few quarters. The ratio indicates the proportion of the company's assets that are financed through debt. A higher ratio suggests that the company relies more on debt financing, which can increase financial risk.

Based on the data provided, Wolfspeed Inc's debt-to-assets ratio has generally been trending upwards over the period, from 0.17 in September 2019 to a peak of 0.77 in June 2024. This indicates that the company has been increasing its reliance on debt to finance its assets.

A notable increase in the ratio occurred between March 2022 and March 2023, where the ratio jumped from 0.27 to 0.55, signaling a significant increase in debt relative to its assets during that period. However, the ratio decreased slightly in the following quarter but remained relatively elevated at around 0.70 levels.

In conclusion, the upward trend in Wolfspeed Inc's debt-to-assets ratio suggests a growing reliance on debt financing to support its operations and investments. It's essential for stakeholders to closely monitor this trend to assess the company's financial health and risk profile.