FormFactor Inc (FORM)

Financial leverage 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
Total assets	US$ in thousands	1,106,790	1,032,970	1,025,140	1,019,760	1,008,230	1,022,360	1,042,450	1,056,880	1,020,520	1,006,590	988,546	980,211	963,217	915,607	884,234	849,379	839,882	793,605	757,569	756,621
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
Financial leverage ratio		1.22	1.23	1.23	1.24	1.25	1.26	1.26	1.25	1.25	1.28	1.28	1.28	1.29	1.28	1.28	1.27	1.31	1.29	1.25	1.28

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 been relatively stable over the past few quarters, ranging from 1.22 to 1.31. The ratio indicates the proportion of the company's total assets financed by its creditors compared to its equity. A higher ratio suggests higher financial risk due to increased reliance on debt financing.

In this case, the financial leverage ratio has generally been above 1, indicating that FormFactor Inc has more debt in its capital structure compared to equity. This suggests that the company may have a higher level of financial risk and may be more vulnerable to changes in interest rates or economic conditions.

It is important for investors and stakeholders to monitor the trend of the financial leverage ratio over time to assess the company's ability to meet its financial obligations and manage its debt levels effectively. Further analysis of the company's overall financial health and cash flow position would provide more insights into FormFactor Inc's leverage and risk profile.