Benchmark Electronics Inc (BHE)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 2,139,460 2,149,000 2,154,740 2,212,810 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
Total stockholders’ equity US$ in thousands 1,113,310 1,102,680 1,095,100 1,085,170 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
Financial leverage ratio 1.92 1.95 1.97 2.04 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

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,139,460K ÷ $1,113,310K
= 1.92

The financial leverage ratio of Benchmark Electronics Inc has shown an increasing trend over the period from March 31, 2020, to December 31, 2024. The ratio increased from 1.84 on March 31, 2020, to 2.11 on December 31, 2023, before slightly declining to 1.92 on December 31, 2024.

This upward trend in the financial leverage ratio indicates that the company has been relying more on debt financing to support its operations and growth. A higher financial leverage ratio suggests that the company is using more debt relative to equity, which can magnify returns on investment but also increase financial risk.

It is important to note that while a high financial leverage ratio can potentially boost returns during favorable economic conditions, it also exposes the company to increased financial risk and potentially higher costs of borrowing. Therefore, investors and stakeholders should closely monitor Benchmark Electronics Inc's financial leverage ratio to assess the company's ability to meet its debt obligations and manage its financial risk effectively.