Spotify Technology (Spotify Technology) Debt-to-Equity : 0.53 (As of Mar. 2024)

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What is Spotify Technology Debt-to-Equity?

Spotify Technology's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $0 Mil. Spotify Technology's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2024 was $1,916 Mil. Spotify Technology's Total Stockholders Equity for the quarter that ended in Mar. 2024 was $3,597 Mil. Spotify Technology's debt to equity for the quarter that ended in Mar. 2024 was 0.53.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Spotify Technology's Debt-to-Equity or its related term are showing as below:

SPOT' s Debt-to-Equity Range Over the Past 10 Years
Min: -4.63 Med: 0.67 Max: 6.35
Current: 0.53

During the past 9 years, the highest Debt-to-Equity Ratio of Spotify Technology was 6.35. The lowest was -4.63. And the median was 0.67.

SPOT's Debt-to-Equity is ranked worse than
79.06% of 425 companies
in the Interactive Media industry
Industry Median: 0.15 vs SPOT: 0.53

Spotify Technology Debt-to-Equity Historical Data

The historical data trend for Spotify Technology's Debt-to-Equity 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.

Spotify Technology Debt-to-Equity Chart

Spotify Technology Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Debt-to-Equity

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0.31

0.21

0.84

0.70

0.67

Spotify Technology Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Debt-to-Equity	Get a 7-Day Free Trial															0.73	0.82	0.81	0.67	0.53

Competitive Comparison of Spotify Technology's Debt-to-Equity

For the Internet Content & Information subindustry, Spotify Technology's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Spotify Technology's Debt-to-Equity Distribution in the Interactive Media Industry

For the Interactive Media industry and Communication Services sector, Spotify Technology's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Spotify Technology's Debt-to-Equity falls into.

Spotify Technology Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Spotify Technology's Debt to Equity Ratio for the fiscal year that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(0	+	1849.509)	/	2751.363
	=	0.67

Spotify Technology's Debt to Equity Ratio for the quarter that ended in Mar. 2024 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(0	+	1916.304)	/	3596.739
	=	0.53

Spotify Technology (NYSE:SPOT) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Spotify Technology Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Spotify Technology's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.

Spotify Technology (Spotify Technology) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Communication Services » Interactive Media » Spotify Technology SA (NYSE:SPOT) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

SPOT:Mexico 1SPOT:Italy 639:Germany 639:Germany S1PO34:Brazil SPOT:Austria

Address

5, Place de la Gare, Luxembourg, LUX, L-1616

Website

https://www.spotify.com

Spotify, headquartered in Stockholm, Sweden, is one of the world's largest music streaming service providers, with 489 million total listeners. The firm monetizes its users through a paid subscription model, referred to as its premium service, and an ad-based model, referred to as its ad-supported service. Revenue from premium and ad-supported services represented 87% and 13% of Spotify's 2022 total revenue, respectively.