Qualcomm Inc. (NASDAQ:QCOM)

Debt to Equity

The debt to equity ratio shows a general downward trend from 2.59 in 2020 to a low of 0.56 in 2024, followed by a slight increase to 0.7 in 2025. This suggests the company has been reducing its reliance on debt relative to equity over the years, improving its financial stability, though the slight uptick in 2025 indicates a minor increase in gearing.

Debt to Equity (Including Operating Lease Liability)

This ratio follows a similar pattern as the standard debt to equity ratio, decreasing steadily from 2.67 in 2020 to 0.59 in 2024, then rising marginally to 0.74 in 2025. The inclusion of operating lease liabilities does not significantly change the overall trend but slightly increases the ratio values.

Debt to Capital

The debt to capital ratio consistently decreases from 0.72 in 2020 to 0.36 in 2024, with a minor rise to 0.41 in 2025. This indicates a reduction in the proportion of debt within the company's total capital structure, reflecting a move towards lower financial risk.

Debt to Capital (Including Operating Lease Liability)

This ratio mirrors the debt to capital trend, beginning at 0.73 in 2020 and decreasing to 0.37 in 2024, before slightly increasing to 0.42 in 2025. Lease liabilities modestly impact the ratio, but the overall pattern indicates improved capital structure stability.

Debt to Assets

The ratio declines steadily from 0.44 in 2020 to 0.27 in 2024, then slightly rises to 0.3 in 2025. This indicates a continuous reduction in debt relative to total assets, which implies enhanced asset financing through means other than debt.

Debt to Assets (Including Operating Lease Liability)

Including operating lease liabilities, the debt to assets ratio shows a similar decrease from 0.46 in 2020 to 0.28 in 2024, with a minor increase to 0.31 in 2025. The inclusion of lease liabilities has a consistent but small impact on the leverage metric.

Financial Leverage

Financial leverage decreases significantly from 5.86 in 2020 to 2.1 in 2024, then moderately increases to 2.36 in 2025. This reduction suggests a considerable decrease in asset financing through borrowed funds or liabilities relative to equity, indicating a potential strengthening of the equity base.

Interest Coverage

Interest coverage exhibits volatility, increasing sharply from 10.5 in 2020 to a peak of 31.61 in 2022, dropping to 11.72 in 2023, then rising again to 20.07 in 2025. This suggests fluctuating earnings relative to interest expenses, with particularly strong ability to cover interest costs in 2021, 2022, and 2025, but some tighter coverage in 2023.

Fixed Charge Coverage

Fixed charge coverage follows a pattern similar to interest coverage, climbing from 8.3 in 2020 to a high of 22.52 in 2022, then declining to 9.29 in 2023 before recovering to 15.93 in 2025. This indicates comparable trends in covering fixed financial obligations, showing periods of strong coverage interrupted by a dip in 2023.

The financial data reveals several key trends in the company's capital structure over the analysis period. Total debt has remained relatively stable, with minor fluctuations. Specifically, the debt level decreased slightly from US$15,726 million in 2020 to US$14,811 million in 2025, indicating a modest reduction in leverage.

In contrast, stockholders’ equity showed a significant upward trajectory from 2020 through 2024, rising from US$6,077 million to US$26,274 million. This represents a substantial accumulation of equity capital, more than quadrupling over the four-year span. However, there is a noticeable decline in equity in 2025, dropping to US$21,206 million, which may warrant further examination to understand the underlying cause.

The debt to equity ratio reflects these movements, exhibiting a marked improvement in the company's leverage position. The ratio dropped sharply from 2.59 in 2020 to 0.56 by 2024, demonstrating reduced reliance on debt relative to equity. This downward trend points to stronger equity financing and potentially improved financial stability. However, the ratio slightly increases to 0.70 in 2025, corresponding with the decline in equity, suggesting a modest increase in leverage within the most recent period.

Total debt

Relatively stable with a slight decrease over the five years, indicating controlled debt levels.

Stockholders' equity

Strong and consistent growth through 2024 followed by a notable decline in 2025, suggesting possible changes in retained earnings, share repurchases, or dividend policies.

Debt to equity ratio

Significant reduction from 2020 to 2024 reflects improved financial leverage; a slight increase in 2025 possibly due to the decrease in equity.

Overall, the data suggests the company has strengthened its equity base substantially while maintaining fairly stable debt levels, enhancing its financial stability. The recent decline in equity and slight uptick in leverage ratio observed in the final year indicate areas for closer monitoring moving forward.

Total Debt

The total debt, including operating lease liabilities, exhibited a generally declining trend over the analyzed periods. Starting at $16,231 million, it slightly increased to $16,299 million the following year before gradually decreasing to $15,440 million by the fifth period. In the most recent year, the debt level rose marginally to $15,643 million. This overall reduction implies a strategic effort to manage and reduce liabilities over time with a small uptick in the last reported period.

Stockholders’ Equity

Stockholders' equity showed a significant upward trajectory throughout the reported years. It nearly doubled from $6,077 million in the earliest period to $9,950 million in the next year. This rapid growth continued, reaching a peak of $26,274 million in the second most recent year, followed by a notable reduction to $21,206 million in the latest period. Despite the last decline, the equity position remains substantially higher than at the start, indicating considerable value creation or capital injection before the recent pullback.

Debt to Equity Ratio

The debt to equity ratio reveals a pronounced improvement in financial leverage. It decreased sharply from 2.67 in the first period to 1.64 in the second, and further down to 0.59 at its lowest point in the fifth period, reflecting controlled indebtedness relative to equity growth. In the latest year, there was a slight increase to 0.74, yet the ratio remains well below initial levels. This decline suggests enhanced financial stability and reduced risk associated with capital structure.

Total Debt

The total debt remained relatively stable between 2020 and 2023, showing only a slight decrease from 15,726 million US dollars in 2020 to 15,398 million US dollars in 2023. A more noticeable decline occurred in 2024, where total debt decreased to 14,634 million US dollars. In 2025, there was a minor increase to 14,811 million US dollars. Overall, the total debt exhibited a gradual downward trend over the period, with a subtle uptick in the final year.

Total Capital

Total capital showed consistent growth from 21,803 million US dollars in 2020 to a peak of 40,908 million US dollars in 2024. However, in 2025, total capital decreased to 36,017 million US dollars, marking a notable reduction after several years of expansion. The increase over the initial years indicates a strengthening equity or asset base, while the decline in the last period suggests potential changes in financing structure or asset base contraction.

Debt to Capital Ratio

The debt to capital ratio demonstrated a clear downward trend from 0.72 in 2020 to 0.36 in 2024, reflecting a decreasing reliance on debt relative to the overall capital structure. This indicates an improvement in financial leverage, suggesting a higher proportion of equity or a lower risk profile associated with debt funding. In 2025, the ratio slightly increased to 0.41, indicating a modest rise in leverage but still considerably below the initial levels observed in 2020.

Summary

Over the period analyzed, the company experienced a steady reduction in its debt to capital ratio, primarily driven by substantial growth in total capital alongside relatively stable or declining total debt. This pattern points toward a strengthening capital base and a decreasing dependency on debt financing, which could imply improved financial stability and reduced risk. The slight increase in debt and the corresponding ratio in the final year may warrant monitoring to understand whether this represents a strategic shift or a short-term fluctuation.

The analysis of the presented financial data reveals several key trends in the company's capital structure over the six-year period ending in 2025.

Total Debt (Including Operating Lease Liability)

The total debt level remained relatively stable from 2020 to 2023, with a slight downward trend from 16,231 million US dollars in 2020 to 16,067 million US dollars in 2023. Thereafter, there was a noticeable decrease to 15,440 million US dollars in 2024, followed by a minor increase to 15,643 million US dollars in 2025. Overall, total debt exhibited a modest reduction across the period.

Total Capital (Including Operating Lease Liability)

Total capital experienced a consistent and significant increase from 22,308 million US dollars in 2020 to a peak of 41,714 million US dollars in 2024. However, in 2025, total capital declined to 36,849 million US dollars. This pattern indicates substantial growth in the capital base over the first five years, with a partial contraction subsequently.

Debt to Capital Ratio (Including Operating Lease Liability)

The debt to capital ratio shows a clear and steady downward trend from 0.73 in 2020 to 0.37 in 2024, indicating a decreasing reliance on debt within the total capital structure. In 2025, this ratio increased slightly to 0.42, suggesting a modest shift back towards higher relative debt but still well below the levels observed in 2020 and 2021.

In summary, the company has successfully reduced its leverage ratio over the majority of the period, supported by growth in total capital and relatively stable total debt levels. The slight uptick in the debt to capital ratio and the partial decrease in total capital in the final year may warrant further monitoring to assess whether these represent temporary fluctuations or the beginning of a new trend.

Total Debt

The total debt level shows a general downward trend over the observed periods. Starting at 15,726 million USD in 2020, it remained relatively stable through 2021 and 2022 before gradually decreasing to 14,634 million USD by 2024. There is a slight increase in total debt in 2025 to 14,811 million USD, indicating modest borrowing or refinancing activities that year but still maintaining a lower level compared to the earlier periods.

Total Assets

Total assets demonstrate consistent growth from 35,594 million USD in 2020 to a peak of 55,154 million USD in 2024. However, in 2025, assets decline to 50,143 million USD, indicating a possible divestiture, asset impairment, or other balance sheet adjustments. Despite this decrease in the final year, the asset base is still significantly larger compared to the initial years.

Debt to Assets Ratio

The debt to assets ratio shows a steady decline over the period, moving from 0.44 in 2020 to 0.27 in 2024. This trend indicates improving leverage position and suggests the company has been reducing its relative debt burden or increasing its asset base, or both. In 2025, there is a slight uptick to 0.30, corresponding to the small increase in debt and decrease in assets noted above. Overall, the leverage remains lower than in prior years, reflecting a stronger balance sheet position.

Total Debt (including operating lease liability)

The total debt level exhibited a marginal decline from $16,231 million in 2020 to $15,440 million in 2024, indicating a modest reduction in leverage over the five-year period. However, there was a slight uptick to $15,643 million in 2025, suggesting a minor reversal of the downward debt trend. Overall, total debt has remained relatively stable with minor fluctuations around the $16 billion mark.

Total Assets

Total assets demonstrated significant growth from $35,594 million in 2020, peaking at $55,154 million in 2024. This growth reflects a substantial expansion of the company’s asset base by approximately 55% over this period. However, in 2025, total assets declined to $50,143 million, indicating some contraction after the peak, though still substantially higher than the initial 2020 value.

Debt to Assets Ratio (including operating lease liability)

The debt to assets ratio showed a consistent downward trend from 0.46 in 2020 to a low of 0.28 in 2024. This decline indicates an improving capital structure with a lower proportion of debt relative to assets, suggesting reduced financial risk and improved solvency. In 2025, there was a slight increase in the ratio to 0.31, which may reflect the combination of a decrease in total assets and a small increase in total debt for that year. Despite this, the ratio remains considerably lower than the level recorded in 2020.

Summary

The financial data reveals that over the noted periods, debt levels were managed with a general slight decreasing trend, while total assets grew substantially before experiencing a dip in the most recent year. The overall decrease in the debt to assets ratio points to strengthened financial stability and improved asset funding from equity or retained earnings rather than debt. The minor reversal in these trends in the latest year warrants monitoring to assess whether this reflects a temporary adjustment or the beginning of a new financial pattern.

The financial data reveals several key trends in the company's balance sheet over the observed periods. Total assets exhibited a consistent upward trajectory from 2020 through 2024, increasing from approximately $35.6 billion to $55.2 billion, indicating growth in the company's asset base. However, a slight decline in total assets is observed in 2025, falling to about $50.1 billion.

Stockholders’ equity showed a robust and steady increase throughout the years until 2024, growing from $6.1 billion to $26.3 billion. This substantial growth in equity suggests sustained profitability and retained earnings, or potential capital injections. In 2025, equity declined noticeably to $21.2 billion, which could indicate distributions to shareholders, write-downs, or other equity reductions.

The financial leverage ratio, calculated as total assets divided by stockholders' equity, decreased significantly from 5.86 in 2020 to 2.10 in 2024, reflecting a marked reduction in reliance on debt financing relative to equity. This downward trend signifies a strengthening capital structure and potentially lower financial risk. In 2025, the leverage ratio slightly increased to 2.36, indicating a moderate rise in leverage but still maintaining a comparatively conservative financial position compared to the earlier years.

Total Assets

Increased steadily for five years before a minor decline, signaling overall growth and a recent contraction.

Stockholders’ Equity

Strong growth trend culminating in 2024 followed by a notable reduction in the last period, indicating a change in equity management or capital activities.

Financial Leverage

Declined continuously, reflecting reduced debt dependency, with a slight uptick in the final year, suggesting a small increase in leverage but still at a manageable level.

Earnings before interest and tax (EBIT)

The EBIT demonstrates notable fluctuations over the periods analyzed. It increased significantly from 6,321 million USD in 2020 to a peak of 15,488 million USD in 2022. However, in 2023, there was a considerable decline to 8,137 million USD, followed by a recovery trend in 2024 and 2025, reaching 13,327 million USD by the last period.

Interest expense

The interest expense shows a relatively stable pattern, though it slightly decreased from 602 million USD in 2020 to 490 million USD in 2022, then increased again to around 694-697 million USD in 2023 and 2024, before a modest reduction to 664 million USD in 2025. The fluctuations are minor compared to the changes in EBIT.

Interest coverage ratio

The interest coverage ratio illustrates a strong ability to cover interest expenses with earnings over the years. It surged from 10.5 in 2020 to an impressive 31.61 in 2022, driven by the rise in EBIT and the reduction of interest expenses. The ratio declined sharply to 11.72 in 2023, aligning with the drop in EBIT, but improved again, reaching 20.07 in 2025. This indicates sustained operational strength with some variability linked to EBIT performance.

Earnings Before Fixed Charges and Tax

The earnings before fixed charges and tax show a rising trend from 2020 to 2022, increasing significantly from 6,502 million US dollars to 15,695 million US dollars. In 2023, there is a notable decline to 8,341 million US dollars, followed by a recovery in 2024 and 2025, reaching 11,217 million and 13,511 million US dollars respectively. This pattern suggests a peak in 2022, a subsequent dip in 2023, and a gradual rebound thereafter.

Fixed Charges

The fixed charges remain relatively stable over the years, with values ranging narrowly between 697 million and 898 million US dollars. The highest fixed charges occur in 2023 at 898 million US dollars, while the lowest is observed in 2022 at 697 million US dollars. Overall, the fixed charges do not display a strong upward or downward trend.

Fixed Charge Coverage Ratio

The fixed charge coverage ratio experiences a significant increase from 8.3 in 2020 to a peak of 22.52 in 2022, reflecting improved ability to cover fixed charges with earnings before fixed charges and tax. This is followed by a sharp decrease to 9.29 in 2023, in line with the dip in earnings, and a subsequent recovery in 2024 and 2025 to 12.73 and 15.93 respectively. The ratio's fluctuation underscores the volatility observed in earnings while fixed charges remained stable.