Debt-to-Equity Ratio

Semtech’s Debt-to-Equity Ratio of 0.86x indicates that for every dollar of shareholder equity, the company owes 86 cents in debt — a measure of financial leverage.

This is well above the Technology sector median of 0.27x, placing SMTC in the 77th percentile among its peers, meaning its debt load is higher than most comparable companies. The metric has been stable over the last eight quarters, though the year-over-year change is not available and the quarter-over-quarter change shows a +17.8% increase. While the elevated debt level suggests higher financial risk, the stable longer-term trend implies the company is not rapidly escalating leverage, but the recent quarterly rise warrants monitoring. This combination — a high debt ratio with a stable but recently increasing trend — points to a moderate risk that could limit upside if interest costs grow. That risk supports the overall NEUTRAL verdict on the stock, as the metric neither clearly favors nor strongly contradicts the cautious stance.

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