FormFactor Inc (FORM)

Debt-to-equity 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-equity ratio		0.01	0.02	0.02	0.03	0.02

December 31, 2023 calculation

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

The debt-to-equity 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 conservative in its use of debt to finance its operations and investments, preferring to rely more on equity financing. A low debt-to-equity ratio suggests a lower financial risk as the company has a lower level of debt compared to its equity. It also indicates that the company has a strong financial position and may have better access to credit markets if needed. Overall, the consistent low debt-to-equity ratio of FormFactor Inc reflects a prudent financial management strategy.