Cohu Inc (COHU)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 34,303 | 72,664 | 103,393 | 311,551 | 346,518 |
| Total stockholders’ equity | US$ in thousands | 950,170 | 928,841 | 882,502 | 512,288 | 483,072 |
| Debt-to-capital ratio | 0.03 | 0.07 | 0.10 | 0.38 | 0.42 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $34,303K ÷ ($34,303K + $950,170K)
= 0.03
The debt-to-capital ratio for Cohu Inc has exhibited a declining trend over the past five years, decreasing from 0.42 in 2019 to 0.03 in 2023. This indicates that the company has been reducing its reliance on debt financing in relation to its total capital structure. A lower debt-to-capital ratio suggests a lower financial risk and greater financial stability as the company is less dependent on borrowed funds. Cohu Inc's decreasing debt-to-capital ratio may be a result of debt repayments, improved operating performance, or a combination of both. This trend could be viewed positively by investors and creditors as it strengthens the company's financial position and ability to meet its financial obligations. It is important for investors to monitor this ratio over time to assess the company's debt management and overall financial health.
Peer comparison
Dec 31, 2023