Cohu Inc (COHU)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 999,415 | 1,150,350 | 1,227,410 | 1,259,040 | 1,095,510 |
| Total stockholders’ equity | US$ in thousands | 856,891 | 950,170 | 928,841 | 882,502 | 511,624 |
| Financial leverage ratio | 1.17 | 1.21 | 1.32 | 1.43 | 2.14 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $999,415K ÷ $856,891K
= 1.17
The financial leverage ratio of Cohu Inc has exhibited a declining trend over the years, indicating a decreasing reliance on debt to finance its operations and growth. The ratio decreased from 2.14 in 2020 to 1.17 in 2024, reflecting a significant improvement in the company's leverage position. This reduction in financial leverage suggests that Cohu Inc may be effectively managing its debt levels and enhancing its financial stability. A lower leverage ratio is generally favorable as it implies lower financial risk and greater financial flexibility for the company. Overall, the decreasing trend in Cohu Inc's financial leverage ratio indicates a prudent approach towards managing its capital structure and debt obligations.
Peer comparison
Dec 31, 2024