Axcelis Technologies Inc (ACLS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,281,970 | 1,013,640 | 753,240 | 624,624 | 548,094 |
| Total stockholders’ equity | US$ in thousands | 864,882 | 667,256 | 538,959 | 481,602 | 419,427 |
| Financial leverage ratio | 1.48 | 1.52 | 1.40 | 1.30 | 1.31 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,281,970K ÷ $864,882K
= 1.48
The financial leverage ratio of Axcelis Technologies Inc has exhibited fluctuating trends over the past five years. The ratio stood at 1.48 in 2023, showing a slight decrease from 1.52 in 2022. This decrease indicates that the company relied less on debt financing relative to its equity in 2023 compared to the previous year.
Looking back further, we see that the financial leverage ratio was higher at 1.40 in 2021, 1.30 in 2020, and 1.31 in 2019. This suggests that Axcelis Technologies Inc has gradually increased its leverage over this time period, relying more on debt to finance its operations compared to its equity.
It is important to note that a financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. A higher ratio implies higher financial risk due to increased levels of debt, which can potentially lead to higher interest expenses and financial instability in times of economic downturns.
Overall, the fluctuating trend in Axcelis Technologies Inc's financial leverage ratio highlights the company's changing capital structure and indicates varying levels of reliance on debt financing over the past five years. Additional analysis of the company's financial statements and market conditions would be necessary to fully assess the implications of these changes in leverage.
Peer comparison
Dec 31, 2023