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Qorvo Long-Term Debt & Capital Lease Obligation

: $2,047 Mil (As of Jun. 2022)
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Long-Term Debt & Capital Lease Obligation is the debt and capital lease obligation due more than 12 months in the future. Qorvo's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $2,047 Mil.

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. It is calculated as a company's Long-Term Debt & Capital Lease Obligation divides by its Total Assets. Qorvo's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $2,047 Mil. Qorvo's Total Assets for the quarter that ended in Jun. 2022 was $7,331 Mil. Qorvo's LT-Debt-to-Total-Asset for the quarter that ended in Jun. 2022 was 0.28.

Qorvo's LT-Debt-to-Total-Asset increased from Jun. 2021 (0.24) to Jun. 2022 (0.28). It may suggest that Qorvo is progressively becoming more dependent on debt to grow their business.


Qorvo Long-Term Debt & Capital Lease Obligation Historical Data

The historical data trend for Qorvo's Long-Term Debt & Capital Lease Obligation can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Qorvo Annual Data
Trend Mar13 Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22
Long-Term Debt & Capital Lease Obligation
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 983.29 920.94 1,567.23 1,742.55 2,047.10

Qorvo Quarterly Data
Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22
Long-Term Debt & Capital Lease Obligation Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1,741.55 1,740.55 2,046.95 2,047.10 2,047.18

Qorvo Long-Term Debt & Capital Lease Obligation Calculation

Long-Term Debt is the debt due more than 12 months in the future. The debt can be owed to banks or bondholders. Some companies issue bonds to investors and pay interest on the bonds.

Long-Term Capital Lease Obligation represents the total liability for long-term leases lasting over one year. It's amount equal to the present value (the principal) at the beginning of the lease term less lease payments during the lease term.

The interest paid on companies' debt is reflected in the income statement as interest expense. If a company has too much debt and it cannot serve the interest payment on the debt or repay the matured debt, the company risks bankruptcy. Peter Lynch famously said: A company that does not have debt cannot go bankrupt.

A company's long term debt may have different dates of maturity and interest rates, depending on the terms.

Usually a company issues long term debt to pay for its capital expenditures. Borrowing allows the company to do things that otherwise cannot be done with only the capital it has. But debt can be risky.


Qorvo  (NAS:QRVO) Long-Term Debt & Capital Lease Obligation Explanation

LT-Debt-to-Total-Asset is a measurement representing the percentage of a corporation's assets that are financed with loans and financial obligations lasting more than one year. The ratio provides a general measure of the financial position of a company, including its ability to meet financial requirements for outstanding loans. A year-over-year decrease in this metric would suggest the company is progressively becoming less dependent on debt to grow their business.

Qorvo's LT-Debt-to-Total-Asset ratio for the quarter that ended in Jun. 2022 is calculated as:

LT-Debt-to-Total-Asset (Q: Jun. 2022 )=Long-Term Debt & Capital Lease Obligation (Q: Jun. 2022 )/Total Assets (Q: Jun. 2022 )
=2047.183/7330.521
=0.28

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Buffett says that durable competitive advantages carry little to no long-term debt because the company is so profitable that even expansions or acquisitions are self financed.

We are interested in long term debt load for the last ten years. If the ten years of operation show little to no long term debt, then the company has some kind of strong competitive advantage.

Warren Buffett's historic purchases indicate that on any given year, the company should have sufficient yearly net earnings to pay all long term within 3 or 4 year earnings period. (e.g. Coke + Moody's = 1yr)

Companies with enough earning power to pay long term debt in less than 3 or 4 years is a good candidate in our search for long term competitive advantage.

BUT, these companies are targets for leveraged buy outs, which saddles the business with long term debt.

If all else indicates the company has a moat, but it has ton of debt, a leveraged buyout may have created the debt. In these cases the company's bonds offer the better bet, in that the company’s earnings power is focused on paying off the debt and not growth.

Important: little or no long term debt often means a Good Long Term Bet


Qorvo Long-Term Debt & Capital Lease Obligation Related Terms

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Qorvo Business Description

Qorvo logo
Industry
GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Qorvo Inc (NAS:QRVO) » Definitions » Long-Term Debt & Capital Lease Obligation
Traded in Other Exchanges
Address
7628 Thorndike Road, Greensboro, NC, USA, 27409-9421
Qorvo represents the combined entity of RF Micro Devices and TriQuint Semiconductor, which merged with one another in January 2015. The company specializes in radio frequency filters, power amplifiers, and front-end modules used in many of the world's most advanced smartphones. Qorvo also has a suite of products sold into a variety of nonsmartphone end markets, such as wireless base stations, cable TV and networking equipment, and infrastructure and military applications.
Executives
Brown Grant officer: VP of Treasury & Interim CFO 7628 THORNDIKE ROAD GREENSBORO NC 27409
Chesley Philip officer: Pres. Infra & Defense 7628 THORNDIKE ROAD GREENSBORO NC 27409
Bruner Judy director C/O SANDISK CORPORATION 601 MCCARTHY BLVD. MILPITAS CA 95035
Fego Paul J officer: VP, Global Operations 15 SECOR ROAD PO BOX 5226 BROOKFIELD CT 06804
Spradley Susan Louise director C/O NORTEL NETWORKS 8200 DIXIE ROAD STE 100 BRAMPTON ONTARIO A6 L6T 5PT
Murphy Mark J. officer: Chief Financial Officer DELPHI AUTOMOTIVE PLC 5725 DELPHI DRIVE TROY MI 48098
Harrison Gina officer: VP and Corporate Controller 7628 THORNDIKE ROAD GREENSBORO NC 27409
Quinsey Ralph director C/O TRIQUINT SEMICONDUCTOR INC 2300 NE BROOKWOOD PKWY HILLSBORO OR 97124
Laber Michael J. officer: VP and Corporate Controller 2300 NE BROOKWOOD PARKWAY HILLSBORO OR 97124
Buhaly Steven J officer: CFO and Secretary 1195 NW LOMPTON DRIVE BEAVESTON OR 97006
Dileo Daniel A director C/O RF MICRO DEVICES 7628 THORNDIKE ROAD GREENSBORO NC 27409
Gibson C Scott director PMB 316, PO BOX 30,000 JACKSON WY 83002
Nelson Roderick director 2300 NE BROOKWOOD PARKWAY HILLSBORO OR 97124
Ho David H Y director 5500 WAYZATA BOULEVARD SUITE 600 GOLDEN VALLEY MN 55416
Wilkinson Walter H director C/O RF MICRO DEVICES, INC. 7628 THORNDIKE ROAD GREENSBORO NC 27409

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