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.