FormFactor Inc (FORM)

Debt-to-equity 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
Long-term debt	US$ in thousands	13,314	13,586	13,765	14,034	14,389	14,653	14,915	15,175	15,434	17,742	20,123	22,390	24,978	26,874	28,725	13,642	15,639	0	12,500	23,740
Total stockholders’ equity	US$ in thousands	908,804	840,688	834,263	824,372	808,285	808,302	829,985	846,673	815,780	786,390	769,547	766,533	744,084	714,142	690,722	666,417	640,997	614,546	604,102	592,988
Debt-to-equity ratio		0.01	0.02	0.02	0.02	0.02	0.02	0.02	0.02	0.02	0.02	0.03	0.03	0.03	0.04	0.04	0.02	0.02	0.00	0.02	0.04

December 31, 2023 calculation

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

FormFactor Inc's debt-to-equity ratio has been consistently low, ranging from 0.00 to 0.04 over the past five years. This indicates that the company has been using relatively low levels of debt to finance its operations in comparison to its equity. A low debt-to-equity ratio is generally viewed positively as it suggests a lower financial risk and potentially indicates good financial health. Throughout the periods analyzed, FormFactor Inc has maintained a conservative approach to its capital structure, relying more on equity financing rather than debt. This strategy can provide the company with more flexibility and stability in times of economic uncertainty or volatile market conditions. Overall, FormFactor Inc's consistently low debt-to-equity ratio reflects a prudent financial policy focusing on maintaining a healthy balance between debt and equity in its capital structure.