Benchmark Electronics Inc (BHE)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	2,274,760	2,227,330	1,903,880	1,744,240	1,759,870
Total stockholders’ equity	US$ in thousands	1,079,080	1,026,420	973,802	989,588	1,014,830
Financial leverage ratio		2.11	2.17	1.96	1.76	1.73

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,274,760K ÷ $1,079,080K
= 2.11

The financial leverage ratio of Benchmark Electronics Inc. has shown a slight decrease from 2.17 in 2022 to 2.11 in 2023, indicating a lower level of financial leverage in the most recent year. This ratio measures the proportion of the company's total assets that are financed by debt, and a higher ratio suggests higher financial risk due to increased reliance on borrowing.

The trend over the past five years shows an overall increase in the financial leverage ratio, with a significant jump from 1.73 in 2019 to 1.96 in 2021. This increase indicates that the company has been taking on more debt to finance its operations or growth strategies during this period.

While the decrease in 2023 compared to the previous year may signal a potential improvement in the company's financial risk profile, it is essential to further analyze the reasons behind this change and monitor future trends to assess the company's overall financial stability and risk management practices.