FormFactor Inc (FORM)

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	13,314	14,389	15,434	24,978	15,639
Total stockholders’ equity	US$ in thousands	908,804	808,285	815,780	744,084	640,997
Debt-to-capital ratio		0.01	0.02	0.02	0.03	0.02

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $13,314K ÷ ($13,314K + $908,804K)
= 0.01

The debt-to-capital ratio of FormFactor Inc has been relatively low and stable over the past five years, ranging from 0.01 to 0.03. This indicates that the company has been financing its operations with a conservative mix of debt and equity. A low debt-to-capital ratio suggests that FormFactor Inc relies more on equity financing, which can be seen as a positive indicator of financial stability and lower financial risk. It also implies that the company has a strong ability to cover its debt obligations with its available capital. Overall, the trend in the debt-to-capital ratio of FormFactor Inc demonstrates a prudent approach to capital structure management.