FormFactor Inc (FORM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.21 | 1.22 | 1.25 | 1.25 | 1.29 |
FormFactor Inc's solvency ratios indicate a strong financial position with consistently low levels of debt relative to assets, capital, and equity over the years 2020 to 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio all remained at 0.00, showing that the company's debt levels were effectively negligible compared to its total assets, capital, and equity.
Furthermore, the Financial leverage ratio decreased gradually from 1.29 in 2020 to 1.21 in 2024, suggesting a decreasing reliance on debt financing to support the company's operations. This trend indicates that FormFactor Inc has been effectively managing its leverage and maintaining a healthy balance sheet structure by primarily relying on equity financing.
In conclusion, FormFactor Inc's solvency ratios consistently reflect a solid financial foundation with minimal debt levels and a decreasing leverage ratio, demonstrating the company's ability to support its operations and meet its financial obligations with stable and sustainable capital structure.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 190.98 | 196.57 | 100.95 | 164.62 | 99.58 |
FormFactor Inc's interest coverage has shown a positive trend over the past years, indicating the company's ability to meet its interest obligations. The interest coverage ratio has increased from 99.58 in December 2020 to 190.98 in December 2024. This suggests that the company's earnings before interest and taxes (EBIT) are more than sufficient to cover its interest expenses, reflecting a strong financial position. The significant improvement in the interest coverage ratio over the years implies that FormFactor Inc has been effectively managing its debt and maintaining a healthy ability to service its interest payments.