Wolfspeed Inc (WOLF)

Debt-to-equity 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-equity ratio		6.98	5.54	4.49	4.14	2.57	1.77	1.70	0.62	0.42	0.42	0.19	0.41	0.39	0.36	0.43	0.42	0.38	0.25	0.24	0.23

June 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,161,100K ÷ $882,100K
= 6.98

The debt-to-equity ratio of Wolfspeed Inc has shown a fluctuating trend over the past few quarters. It increased from 0.23 as of September 30, 2019, reaching a peak of 6.98 as of June 30, 2024. This indicates that the company's debt levels have been on the rise relative to its equity over this period.

The significant increase in the debt-to-equity ratio may suggest that Wolfspeed Inc has been relying more on debt financing compared to equity financing. A higher debt-to-equity ratio can indicate a higher financial risk for the company, as it may have difficulty meeting its debt obligations if faced with financial difficulties.

It is important for investors and stakeholders to closely monitor this ratio to assess the company's leverage and financial health. The management of Wolfspeed Inc should carefully consider the implications of the increasing debt-to-equity ratio and ensure that the company's debt levels are sustainable and manageable in the long term.