FormFactor Inc (FORM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
FormFactor Inc has consistently maintained a strong solvency position based on the analysis of its solvency ratios. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all been consistently at 0.00 over the past several years, indicating that the company has not relied heavily on debt to finance its operations and has a low level of financial leverage.
Additionally, the financial leverage ratio has shown a decreasing trend, declining from 1.27 in March 2020 to 1.21 in December 2024. This indicates that the company's reliance on debt financing relative to its equity has decreased over time, which is a positive sign of financial stability.
Overall, FormFactor Inc's solvency ratios suggest that the company has a conservative capital structure and is not overleveraged, which bodes well for its financial health and ability to meet its financial obligations in the long term.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 244.01 | 82.86 | 72.97 | 32.37 | 17.52 | -6.75 | -4.86 | 14.45 | 79.96 | 152.09 | 180.95 | 160.29 | 164.49 | 140.38 | 130.33 | 123.95 | 99.58 | 85.62 | 60.83 | 39.83 |
FormFactor Inc's interest coverage ratio has exhibited significant fluctuations over the past few years, as reflected in the provided data. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
From March 2020 to September 2021, the interest coverage ratio showed a consistent increasing trend, indicating that FormFactor Inc's operating income was sufficient to cover its interest expenses almost five times over by the end of September 2021. This upward trajectory suggests a favorable financial position and improved creditworthiness during this period.
However, starting from December 2021, the interest coverage ratio began to decline, dropping notably to 79.96 by the end of that year. This decrease may indicate a potential strain on the company's ability to cover its interest expenses from operating income alone.
The trend continued into the following quarters of 2023, with negative interest coverage ratios recorded in June and September. Negative interest coverage implies that the company's operating income was insufficient to cover its interest payments, raising concerns about its financial health and ability to meet debt obligations.
By December 2024, there was a significant recovery in the interest coverage ratio, soaring to 244.01, which indicates a notable improvement in FormFactor Inc's ability to meet its interest expenses with operating income.
In conclusion, the fluctuating interest coverage ratios of FormFactor Inc highlight the company's varying financial performance and its ability to manage its debt obligations. It is crucial for investors and creditors to closely monitor these ratios to assess the company's financial stability and risk levels.