FormFactor Inc (FORM)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,106,790 | 1,008,230 | 1,020,520 | 963,217 | 839,882 |
| Total stockholders’ equity | US$ in thousands | 908,804 | 808,285 | 815,780 | 744,084 | 640,997 |
| Financial leverage ratio | 1.22 | 1.25 | 1.25 | 1.29 | 1.31 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,106,790K ÷ $908,804K
= 1.22
The financial leverage ratio of FormFactor Inc has shown a declining trend over the past five years, indicating a decrease in the proportion of the company's assets that are financed by debt compared to equity. A lower financial leverage ratio suggests less reliance on debt financing and a potentially stronger financial position. A ratio of 1.22 in 2023 indicates that the company had $1.22 in debt for every dollar of equity, reflecting a conservative capital structure. This could imply lower financial risk and greater financial stability for the company. Overall, the decreasing trend in the financial leverage ratio of FormFactor Inc suggests a prudent approach towards managing its capital structure and financial risks over the years.
Peer comparison
Dec 31, 2023