Wolfspeed Inc (WOLF)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	882,100	1,022,600	1,150,200	1,245,700	1,621,900	1,706,800	1,780,200	2,109,600	2,439,300	2,390,400	2,378,900	2,039,400	2,116,500	2,247,000	1,864,900	1,908,700	2,083,100	1,939,500	1,991,200	2,020,600
Debt-to-capital ratio		0.87	0.85	0.82	0.81	0.72	0.64	0.63	0.38	0.30	0.30	0.16	0.29	0.28	0.27	0.30	0.29	0.27	0.20	0.19	0.19

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,161,100K ÷ ($6,161,100K + $882,100K)
= 0.87

Wolfspeed Inc's debt-to-capital ratio has exhibited fluctuations over the past few quarters. The ratio stood at 0.87 as of June 30, 2024, indicating that debt represented 87% of the company's capital structure. This figure has been gradually increasing from a low of 0.16 in the fourth quarter of 2021.

The rising trend in the debt-to-capital ratio suggests that Wolfspeed may be relying more on debt financing to support its operations and growth initiatives. A higher debt-to-capital ratio could potentially indicate increased financial risk and a higher interest burden for the company.

It is essential for stakeholders to monitor Wolfspeed's debt levels closely to ensure that the company maintains a healthy balance between debt and equity in its capital structure. By analyzing the trend in the debt-to-capital ratio over time, investors and creditors can assess the company's financial leverage and risk profile.