Cohu Inc (COHU)
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 | 1,150,350 | 1,167,520 | 1,188,060 | 1,187,600 | 1,227,410 | 1,197,920 | 1,239,400 | 1,243,340 | 1,259,040 | 1,272,870 | 1,371,730 | 1,258,760 | 1,090,350 | 1,046,350 | 1,066,580 | 1,072,160 | 1,077,710 | 1,071,610 | 1,103,500 | 1,106,200 |
| Total stockholders’ equity | US$ in thousands | 950,170 | 946,236 | 953,393 | 938,779 | 928,841 | 881,811 | 894,452 | 886,897 | 882,502 | 871,979 | 850,231 | 749,474 | 512,288 | 474,609 | 466,758 | 464,884 | 483,072 | 491,753 | 514,805 | 528,670 |
| Financial leverage ratio | 1.21 | 1.23 | 1.25 | 1.27 | 1.32 | 1.36 | 1.39 | 1.40 | 1.43 | 1.46 | 1.61 | 1.68 | 2.13 | 2.20 | 2.29 | 2.31 | 2.23 | 2.18 | 2.14 | 2.09 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,150,350K ÷ $950,170K
= 1.21
The financial leverage ratio of Cohu Inc has been gradually increasing over the past few quarters, indicating an increase in the company's debt relative to its equity. This trend suggests that Cohu has been relying more on debt financing to support its operations and growth initiatives. The ratio has moved from 1.21 at the end of 2019 to 2.09 at the end of 2019, reflecting a significant uptrend in leverage.
Such a high level of financial leverage can increase the company's financial risk and make it more susceptible to economic downturns or unexpected challenges. Investors and creditors may be concerned about Cohu's ability to meet its debt obligations, particularly in times of financial stress. It is important for the company to closely monitor and manage its leverage levels to ensure long-term financial stability and sustainability.
Peer comparison
Dec 31, 2023