SMTCCAUTIOUS

SMTC Debt-to-Equity Ratio Analysis

0.86x

Higher than 79% of Technology sector peers

Updated 83h ago·SEC filings & market data

Key Takeaway

SMTC's Debt-to-Equity Ratio of 0.86x means the company carries 86 cents of debt for every $1 of shareholder equity — a higher debt load that increases fixed interest obligations and financial risk.

Sector Performance

79th percentile

SMTC

0.86x

Sector Median

0.20x

Sector Avg

0.28x

Prior Period

0.73x(May 2026)

↓ Declining

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Deep Analysis

SMTC's Debt-to-Equity Ratio of 0.86x means the company carries 86 cents of debt for every $1 of shareholder equity — a higher debt load that increases fixed interest obligations and financial risk.

Relative to its Technology sector, this is well above the sector median of 0.23x, placing SMTC in the 77th percentile among peers, meaning 77% of comparable companies carry proportionally less debt. The trend is N/A: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and no historical values beyond the current 0.86x are available, so no directional signal can be derived. That combination — a high debt level with no trend data — suggests the risk profile is currently elevated versus peers, but the absence of historical figures leaves the trajectory unknown, making near-term downside risk harder to gauge. This metric directly supports the overall CAUTIOUS verdict: the 0.86x ratio substantially exceeds the sector benchmark of 0.23x, and without any trend evidence to show deleveraging, the balance sheet warrants caution.

Frequently Asked Questions

What does the Debt-to-Equity Ratio tell investors about SMTC?

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.

How is the Debt-to-Equity Ratio calculated?

Debt-to-Equity Ratio is calculated as: Total Debt / Shareholders' Equity.

How does SMTC's Debt-to-Equity Ratio compare to its sector?

SMTC's Debt-to-Equity Ratio of 0.86x compares to a Technology sector median of 0.20x, placing it in the 79th percentile.

Who are SMTC's closest peers by Debt-to-Equity Ratio?

The closest Technology peers by Debt-to-Equity Ratio include: TSM (0.15x), PTC (0.41x), CAMT (0.71x), AVGO (0.74x), U (0.75x).

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Learn More About Debt-to-Equity Ratio

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Debt/Equity Ratio: How Much Debt Is Too Much?

The debt to equity ratio explained: why context, interest coverage, and sector norms matter far more than the raw number when assessing debt risk.

The Formula

Total Debt / Shareholders' Equity

Why It Matters

Shows how much a company is financing its operations through debt vs shareholder funds. High D/E can amplify returns — and losses.