Benchmark Electronics Inc (BHE)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	2,274,760	2,333,140	2,307,460	2,278,650	2,227,330	2,276,510	2,166,780	2,002,560	1,903,880	1,840,370	1,818,790	1,760,750	1,744,240	1,734,510	1,758,040	1,823,380	1,759,870	1,758,750	1,827,880	1,868,930
Total stockholders’ equity	US$ in thousands	1,079,080	1,063,050	1,047,730	1,034,630	1,026,420	1,000,620	985,773	976,405	973,802	962,336	967,278	977,547	989,588	990,327	984,360	989,622	1,014,830	1,028,770	1,045,050	1,078,720
Financial leverage ratio		2.11	2.19	2.20	2.20	2.17	2.28	2.20	2.05	1.96	1.91	1.88	1.80	1.76	1.75	1.79	1.84	1.73	1.71	1.75	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 for Benchmark Electronics Inc. has been relatively stable over the past 8 quarters, ranging from 2.05 to 2.28. This ratio indicates that the company's assets are primarily financed by debt rather than equity.

A financial leverage ratio of 2.11 in Q4 2023 suggests that for every dollar of equity, the company has $2.11 worth of debt. This implies a higher level of financial risk, as a higher ratio indicates that the company has a higher proportion of debt in its capital structure.

The consistency in the financial leverage ratio indicates that Benchmark Electronics Inc. has maintained a consistent financing mix between debt and equity over the past two years. However, it is important for the company to closely monitor its leverage ratio to ensure it remains at a sustainable level and does not lead to financial distress in the future.