Micron Technology Inc. (NASDAQ:MU)

Debt to Equity Ratios

The debt to equity ratio started at 0.17 and remained relatively stable around 0.14-0.16 through the end of 2021 and beginning of 2022, indicating a conservative use of debt relative to equity. However, a noticeable increase occurred starting in late 2022, reaching a peak of 0.31 in early 2024 before slightly declining to 0.27 in mid-2025. When including operating lease liabilities, the trend is similar but consistently marginally higher, peaking at 0.33-0.32 during the same periods.

Debt to Capital Ratios

Debt to capital ratios demonstrated a steady, low-level presence below 0.15 until the end of 2021, reflecting a strong capital structure with limited leverage. Subsequently, these ratios increased to about 0.23-0.25 between 2023 and 2025, showing a moderate rise in debt relative to total capital. Including operating leases results in slightly higher ratios with the same upward trajectory, indicating leasing obligations contribute to overall leverage but remain controlled.

Debt to Assets Ratios

Debt to assets ratios were stable around 0.11-0.12 through most of 2021 and early 2022, reflecting modest use of debt in asset financing. A significant increase occurred in late 2022, climbing to approximately 0.21-0.22 through early 2024, before a gradual decline to about 0.18 by mid-2025. Including operating leases raises these ratios by roughly 1-2 percentage points, underscoring the impact of operating leases on total liabilities.

Financial Leverage

Financial leverage ratios remained slightly above 1.3 through 2021 and early 2022, indicating a conservative equity multiplier. A progressive increase then occurred, reaching approximately 1.5 to 1.54 from late 2023 into 2025. This upward trend suggests a growing reliance on debt and liabilities to finance assets relative to equity, though still within a moderate range.

Interest Coverage Ratio

Interest coverage showed strong values above 17x from late 2020 through late 2022, peaking at 58.47x in mid-2022, signaling very comfortable ability to meet interest obligations from earnings. From late 2022 onward, the ratio sharply declined, turning negative between early and mid-2023, reflecting operating losses or very low earnings relative to interest expense. Recovery began in late 2023 with the ratio improving to 21.26x by mid-2025, indicating a return to stronger earnings and improved interest payment capacity.

Overall Financial Trends

The data indicates a shift from a conservative capital structure with low leverage and strong interest coverage towards increased leverage starting in late 2022. The rising debt ratios and financial leverage suggest higher reliance on debt and lease obligations during this period, coinciding with a severe erosion of interest coverage leading to temporary negative values. Subsequent quarters show gradual financial stabilization with improved interest coverage and modest reductions in leverage. This pattern reflects a period of financial stress followed by recovery.

Total Debt

Over the observed periods, total debt exhibited a general upward trend. Initially, total debt remained relatively stable, fluctuating marginally around the 6,600 to 7,000 million US dollars range until September 2022. Starting December 2022, there was a marked increase, with debt rising significantly to surpass 10,000 million US dollars. This elevated level continued to grow, peaking around 15,500 million US dollars by August 2025, with a slight decrease toward the end of the period.

Shareholders’ Equity

Shareholders’ equity demonstrated consistent growth over the entire timeframe. From just under 40,000 million US dollars at the start, equity steadily increased quarter over quarter, reaching above 54,000 million US dollars by August 2025. This positive pattern indicates sustained equity strengthening despite fluctuations in other metrics.

Debt to Equity Ratio

The debt to equity ratio remained relatively low and stable, around 0.15 or below during the first two years, reflecting a conservative leverage position. However, from December 2022 onwards, the ratio increased noticeably, rising from 0.21 to peak near 0.31. This shift aligns with the surge in total debt relative to equity. Though the ratio shows some minor oscillations thereafter, it generally stayed elevated above the earlier baseline, suggesting increased leverage but still within a moderate range by financial standards.

Overall Insights

The period under review reveals a company progressively increasing its debt, particularly from late 2022, while shareholders’ equity grew consistently throughout. The rising debt to equity ratio reflects this borrowing increase but remains indicative of controlled leverage. This combination may suggest strategic investment or expansion activities financed through debt, supported by strong equity growth that could help maintain financial stability.

The financial data over the observed quarters reveals distinct trends in the company's leverage and equity position. The total debt, inclusive of operating lease liabilities, exhibits a general upward trajectory from December 2020 through August 2025, with notable acceleration beginning in the December 2022 quarter. Initially, debt levels increased moderately from approximately 7.1 billion US dollars to around 7.5 billion by the end of 2021. However, starting December 2022, the debt surged substantially, reaching peaks above 16 billion US dollars in mid-2025, before a slight reduction towards the last recorded quarter.

Conversely, shareholders' equity demonstrated consistent growth throughout the entire period. Starting near 40 billion US dollars in late 2020, equity rose steadily without significant volatility, surpassing the 54 billion mark by the latter half of 2025. This sustained increase in equity suggests ongoing value creation or retained earnings accumulation despite the rising debt levels.

The debt-to-equity ratio reflects these dynamics in the company's capital structure. Initially, the ratio remained relatively low and stable, fluctuating slightly around 0.15 to 0.18 through 2021 and early 2022, indicative of a conservative leverage position. Beginning in the December 2022 quarter, the ratio increased sharply, reaching a peak of approximately 0.33, which signals a higher reliance on debt financing relative to equity. Although this ratio slightly receded in subsequent quarters, it remained elevated compared to earlier periods, suggesting a strategic shift towards greater leverage.

Total Debt Trend

Moderate increases through 2021 and early 2022, followed by substantial growth starting late 2022, peaking in mid-2025, with a minor decrease thereafter.

Shareholders’ Equity Trend

Consistent and steady growth across all quarters, indicating strengthening equity base despite increasing debt.

Debt to Equity Ratio

Low and stable in early periods, rising markedly from late 2022 onwards, signaling increased leverage and a shift in capital structure.

In summary, the data reveals a strategic increase in debt levels that outpaced growth in equity during the later periods, leading to higher leverage ratios. Despite this, the company maintained a robust and growing equity base, which could mitigate financial risk to some extent. The elevated leverage in recent quarters may reflect initiatives involving expansion, investment, or other capital needs to support business objectives, warranting close monitoring of debt servicing capacity and overall financial stability.

Total Debt

Total debt demonstrated a generally increasing trend over the observed periods. Initially, it remained relatively stable, fluctuating slightly around the 6,600 to 7,000 million USD range through the end of 2021 and early 2022. Starting in late 2022, total debt saw a marked increase, rising sharply to over 13,000 million USD by mid-2023. Following this surge, debt levels continued to fluctuate but maintained an elevated range, peaking close to 15,500 million USD in mid-2025 before retracting somewhat toward the end of the observed period.

Total Capital

Total capital generally trended upward throughout the periods analyzed. Beginning near 46,500 million USD, it showed consistent growth through 2021 and 2022, reaching around 56,800 million USD. During late 2022 and early 2023, total capital plateaued and experienced minor declines. However, from mid-2023 onward, capital figures resumed an upward trajectory, rising steadily and surpassing 68,700 million USD by mid-2025. This indicates expanding capital base despite volatility in the short term.

Debt to Capital Ratio

The debt to capital ratio remained relatively low and stable near 0.13 to 0.14 through the first half of the timeline, reflecting a conservative leverage position. However, starting in late 2022, this ratio increased notably, reaching a peak around 0.24 in early 2024, indicating a rise in leverage consistent with the surge in total debt observed during this period. Following this peak, the ratio stabilized around 0.23 for several subsequent quarters, before experiencing a slight decline to approximately 0.21 by mid-2025. Overall, the company exhibits increased leverage but maintains a moderate debt to capital ratio relative to the higher total capital base.

Debt Levels and Capital Structure

Over the observed periods, total debt including operating lease liabilities shows a general upward trend. Starting from approximately $7.16 billion, the debt remained relatively stable with minor fluctuations until around September 2022. From that point, a significant increase is observed, peaking at about $16.14 billion in May 2025, before slightly declining to around $15.28 billion near the end of the timeline. This rise suggests that the company increased its borrowing or lease obligations substantially in the later periods.

Total Capital

The total capital base also exhibits a steady increase throughout the entire period. Beginning at approximately $47.1 billion, the capital steadily grew, with only slight downturns in the periods around mid-2023. By the end of the timeline, the total capital reached nearly $69.4 billion, indicating overall growth in the company’s capital resources consistent with expansion or investments.

Debt to Capital Ratio Trends

The debt to capital ratio remained relatively stable and low, averaging around 14-15% during the initial periods up to September 2022. However, from September 2022 onward, the ratio increased noticeably, reaching a peak near 25% by early 2024. Although slight fluctuations occurred thereafter, the ratio generally stayed between 22% and 25%, suggesting a deliberate shift towards higher leverage. This indicates the company was relying more on debt financing relative to its capital base in the later years.

Overall Insights

The company appears to have maintained a conservative leverage position until late 2022, after which it increased its debt levels significantly. This increased leverage corresponded with growth in total capital, but at a slower pace relative to debt, as reflected by the rising debt to capital ratio. The higher leverage might reflect strategic financing decisions to support expansion, acquisitions, or capital expenditures. Despite this, the company’s debt to capital ratio remained below 30%, indicating a moderate use of debt relative to its capital structure.

The financial data reveals several noteworthy trends in the company's leverage and asset base over the analyzed periods. Total debt demonstrates a generally increasing trajectory, starting at $6.6 billion and reaching up to approximately $15.5 billion before slightly decreasing to around $14.6 billion by the end of the timeframe. This indicates a substantial growth in borrowing or liabilities over time, with a peak around mid-2025.

Total assets also exhibit a positive growth trend, rising from approximately $53.7 billion to $82.8 billion across the periods. This steady increase suggests ongoing asset accumulation or investment, reflecting expansion or enhancement of the company's resource base.

When examining the debt to assets ratio, a clear pattern emerges. Initially, the ratio remains stable around 0.11 to 0.12, indicating a relatively low level of leverage. However, starting around late 2022, the ratio begins to rise noticeably, reaching approximately 0.21 by early 2024. Following this peak, it slightly declines and stabilizes around 0.18 to 0.20 towards the later periods. This upward shift in the ratio corresponds with the increase in total debt outpacing asset growth during certain intervals, implying increased financial leverage and potentially higher risk exposure.

Total Debt

Shows a significant upward trend from approximately $6.6 billion to a peak near $15.5 billion, reflecting increased borrowing or financial obligations.

Total Assets

Consistently grows from around $53.7 billion to $82.8 billion, indicating asset expansion and possibly reinvestment or acquisition activity.

Debt to Assets Ratio

Maintains a low and stable level initially (circa 0.11-0.12), then rises sharply to around 0.21, before modestly declining and stabilizing, suggesting increased leverage followed by a slight deleveraging or asset growth catch-up.

Overall, the company has expanded its asset base substantially while concurrently increasing its debt levels, especially noticeable in the later periods. The upward movement in the debt to assets ratio signals a shift towards higher financial leverage, which could imply greater risk but also potentially higher returns depending on the company's use of these liabilities.

The analysis of the company's quarterly financial data reveals several noteworthy trends over the observed periods concerning total debt, total assets, and the debt-to-assets ratio.

Total Debt (Including Operating Lease Liability)

The total debt showed relative stability in the initial quarters, fluctuating slightly between approximately 7,100 million and 7,600 million US dollars from late 2020 through late 2022. However, starting in the quarter ending December 1, 2022, there was a significant increase, with debt levels rising sharply to nearly 10,900 million US dollars. This upward trend continued through 2023 and into 2024, peaking above 16,100 million US dollars in mid-2025 before a modest decline toward the end of the period to approximately 15,300 million US dollars. This pattern suggests an aggressive increase in borrowing or lease liabilities beginning in late 2022, which may indicate strategic investment or financing activities.

Total Assets

Total assets demonstrated a steady upward trajectory across the entire timeframe. Starting at around 53,700 million US dollars in late 2020, the asset base grew progressively, surpassing 78,300 million US dollars by mid-2025. The growth appears generally consistent, with only minor fluctuations. This increase in assets reflects expansion or acquisition of resources and suggests strengthening asset capacity or accumulation, possibly in alignment with the increased debt levels observed.

Debt to Assets Ratio (Including Operating Lease Liability)

The debt to assets ratio initially remained relatively low and stable, moving between 0.11 and 0.13 until late 2022, indicating a conservative leverage position. However, beginning in the quarter ending December 1, 2022, the ratio rose significantly to around 0.16, subsequently increasing steadily to a peak of approximately 0.22 between early and mid-2024. Following this peak, a gradual decline occurred, bringing the ratio back down to about 0.18 by mid-2025. This pattern indicates that while the company increased its leverage substantially towards the end of 2022 and early 2024, it started to reduce relative indebtedness thereafter, implying potential deleveraging or asset growth outpacing debt accumulation.

In summary, the company's financial data reveals a notable uptick in debt commencing in late 2022, accompanied by consistent asset growth that maintained a generally moderate leverage ratio despite the increase in debt. The subsequent reduction in the debt-to-assets ratio after its peak suggests efforts to manage leverage through either reducing debt or accelerating asset growth. The overall financial position indicates a period of heightened borrowing possibly supporting expansion, followed by a phase of stabilization and leverage management.

The analysis of the quarterly financial data reveals several notable trends in the company's asset base, shareholders' equity, and financial leverage over the observed periods.

Total Assets

Total assets demonstrate a generally upward trajectory, increasing from approximately $53.7 billion at the end of 2020 to around $82.8 billion by mid-2025. The growth is steady with minor fluctuations; there is a slight decline observed around early 2023, followed by renewed growth through 2024 and 2025, indicating an expanding asset base over the medium term.

Shareholders’ Equity

Shareholders’ equity also shows an overall increasing pattern but with more variability compared to total assets. Starting near $39.9 billion at the end of 2020, equity rose consistently until late 2021, peaking slightly above $49.9 billion. Subsequently, there was a downtrend through 2022 and early 2023, with equity declining to approximately $44.1 billion by mid-2023. From late 2023 onwards, equity recovery is observed, rising again to roughly $54.2 billion by mid-2025. The fluctuations suggest periods of equity contraction possibly due to earnings volatility, share buybacks, dividend payments, or other equity-related transactions.

Financial Leverage

The ratio of financial leverage remains relatively stable initially, hovering around 1.32 to 1.35 through 2020 and 2021. However, starting in late 2022, a gradual but consistent increase in leverage is evident, reaching approximately 1.54 by mid-2025. This trend implies a rising proportion of debt or other liabilities relative to equity in the capital structure, potentially indicating increased reliance on external financing.

In summary, the company's total assets are progressively expanding, reflecting growth and increased resource accumulation. Shareholders' equity exhibits more volatility but ends with a positive upward trend, indicating a potential strengthening of the equity base in the longer term. The gradual rise in financial leverage suggests a strategic shift toward greater use of debt or liabilities, which could impact financial risk and capital costs. These patterns collectively point to an evolving balance sheet composition, with careful attention warranted on leverage dynamics alongside asset and equity growth.

Earnings before interest and tax (EBIT)

The EBIT displayed significant fluctuations over the periods. Starting at a moderate level, the figure saw a substantial increase, peaking around mid-2022. Subsequently, a sharp decline occurred, leading to negative EBIT values for an extended duration from late 2022 through early 2024. From this low point, EBIT gradually recovered and trended upward, reaching its highest observed value at the end of the dataset in mid-2025. This pattern indicates periods of both strong operational performance and considerable challenges, followed by a notable recovery phase.

Interest expense

The interest expense remained relatively stable in the early periods, fluctuating slightly between the mid-40s to mid-50s in millions of US dollars. Starting around late 2022, interest expense increased considerably, peaking in the early quarters of 2023. After reaching this peak, a gradual decline is evident, although the values largely stayed elevated compared to the initial periods. This trend suggests an increased debt burden or higher interest rates during the middle quarters followed by slight easing.

Interest coverage ratio

The interest coverage ratio started at a healthy level above 17 and improved steadily, reaching exceptionally high values near mid-2022, demonstrating strong earnings relative to interest obligations. This ratio then experienced a steep and prolonged decline, becoming negative during the middle of the period, which corresponds with the negative EBIT values. This negative zone indicates earnings insufficient to cover interest expenses during that time. Thereafter, the ratio gradually improved from the negative region, turning positive again by early 2024 and steadily rising thereafter. By the end of the dataset, the interest coverage ratio returned to a comfortable level above 20, signifying improved capacity to meet interest commitments.

Overall observations

The dataset shows a business cycle reflecting initial growth and strong profitability, followed by operational difficulties leading to negative earnings and stressed interest coverage. Despite elevated interest expenses during the downturn, the company's ongoing recovery efforts have improved both EBIT and interest coverage metrics. The positive trend toward the later quarters indicates resilience and strengthening financial health, reinforcing the company’s ability to service debt more comfortably moving forward.