Amkor Technology Inc (AMKR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,771,120 | 6,821,760 | 6,038,550 | 5,022,310 | 4,695,620 |
| Total stockholders’ equity | US$ in thousands | 3,962,310 | 3,668,750 | 2,942,280 | 2,325,700 | 1,963,740 |
| Financial leverage ratio | 1.71 | 1.86 | 2.05 | 2.16 | 2.39 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,771,120K ÷ $3,962,310K
= 1.71
The financial leverage ratio of AMKOR Technology Inc. has displayed a declining trend over the past five years, decreasing from 2.39 in 2019 to 1.71 in 2023. This indicates that the company has been relying less on debt to finance its operations and growth, which can be viewed positively as lower leverage implies lower financial risk. However, a low financial leverage ratio can also suggest that the company may not be taking full advantage of potential growth opportunities that could be funded through debt.
The decreasing trend in the financial leverage ratio could signal that AMKOR Technology Inc. is becoming more financially stable and better positioned to weather economic downturns. It also implies that the company may have improved its ability to generate internal funds to support its operations and investments, reducing the need for external financing through debt.
Overall, the decreasing financial leverage ratio of AMKOR Technology Inc. reflects a strategic shift towards a more conservative capital structure, which may help the company enhance its financial flexibility and resilience in the long run.
Peer comparison
Dec 31, 2023