FormFactor Inc (FORM)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,146,220 | 1,153,780 | 1,156,260 | 1,119,800 | 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 |
| Total stockholders’ equity | US$ in thousands | 947,768 | 955,010 | 947,916 | 923,750 | 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 |
| Financial leverage ratio | 1.21 | 1.21 | 1.22 | 1.21 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,146,220K ÷ $947,768K
= 1.21
FormFactor Inc's financial leverage ratio has been relatively stable over the displayed period, ranging from 1.21 to 1.29. The ratio measures the proportion of the company's total assets that are financed by creditors versus shareholders. A lower ratio indicates a lower level of financial risk as the company relies less on debt to fund its operations.
The gradual decrease in the financial leverage ratio from 1.29 in December 2020 to 1.21 in December 2024 suggests that FormFactor Inc may be reducing its reliance on debt financing and improving its financial position. This trend could be reflective of the company's efforts to strengthen its balance sheet, enhance financial stability, and potentially lower interest expenses.
It is essential for investors and stakeholders to monitor changes in the financial leverage ratio over time to assess the company's capital structure and risk profile. Overall, a declining trend in the financial leverage ratio indicates a positive development in FormFactor Inc's financial health and stability.
Peer comparison
Dec 31, 2024