FormFactor Inc (FORM)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,146,220 | 1,106,790 | 1,008,230 | 1,020,520 | 963,217 |
| Total stockholders’ equity | US$ in thousands | 947,768 | 908,804 | 808,285 | 815,780 | 744,084 |
| Financial leverage ratio | 1.21 | 1.22 | 1.25 | 1.25 | 1.29 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,146,220K ÷ $947,768K
= 1.21
The financial leverage ratio of FormFactor Inc has shown a consistent decrease from 1.29 in December 2020 to 1.21 in December 2024. This indicates a declining trend in the company's reliance on debt financing to fund its operations and growth. A lower financial leverage ratio suggests that the company is becoming less dependent on debt and may have a stronger financial position with a greater proportion of equity in its capital structure. This could potentially reduce the company's financial risk and enhance its ability to weather economic downturns or challenging market conditions. Overall, the decreasing trend in the financial leverage ratio of FormFactor Inc is a positive indicator of the company's financial stability and prudent financial management.
Peer comparison
Dec 31, 2024