Amkor Technology Inc (AMKR)

Debt-to-equity ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Long-term debt US$ in thousands 1,071,830 1,088,520 984,988 1,005,340 1,305,760
Total stockholders’ equity US$ in thousands 3,962,310 3,668,750 2,942,280 2,325,700 1,963,740
Debt-to-equity ratio 0.27 0.30 0.33 0.43 0.66

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,071,830K ÷ $3,962,310K
= 0.27

The debt-to-equity ratio of AMKOR Technology Inc. has shown a decreasing trend over the past five years, indicating improved financial health in terms of leverage. In 2019, the ratio was relatively high at 0.74, suggesting a higher reliance on debt for financing compared to equity. However, the company made significant progress in reducing its debt burden, as evidenced by the consistent decline in the ratio to 0.32 in 2023.

A decreasing debt-to-equity ratio signifies that the company is relying less on debt financing and gradually increasing its equity base, which can result in a more stable financial structure. This trend suggests that AMKOR Technology Inc. may be managing its debt levels effectively, possibly through debt repayment, refinancing, or equity issuance.

Overall, the declining debt-to-equity ratio reflects positively on the company's financial management strategy and indicates a shift towards a more balanced capital structure. Investors and creditors may view this trend favorably, as lower leverage generally indicates lower financial risk and greater capacity to weather economic uncertainties.