FormFactor Inc (FORM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.02 | 0.02 | 0.00 | 0.02 | 0.03 |
| Debt-to-capital ratio | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.02 | 0.02 | 0.00 | 0.02 | 0.04 |
| Debt-to-equity ratio | 0.01 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.02 | 0.03 | 0.03 | 0.03 | 0.04 | 0.04 | 0.02 | 0.02 | 0.00 | 0.02 | 0.04 |
| 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 |
FormFactor Inc's solvency ratios indicate a consistent and stable financial position over the past few quarters. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have remained relatively low and consistent, suggesting a conservative approach to financing and a low reliance on debt. This is further supported by the financial leverage ratio, which has also remained relatively stable around the 1.25 to 1.30 range.
The low levels of debt in relation to assets, capital, and equity reflect a strong financial position and a lower risk of financial distress. Additionally, the stable financial leverage ratio indicates that the company has been able to maintain a healthy balance between debt and equity financing.
Overall, FormFactor Inc's solvency ratios suggest a prudent and sustainable approach to managing its financial obligations and maintaining a strong financial position.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 30.01 | -4.82 | -3.56 | 14.45 | 100.95 | 171.75 | 200.65 | 180.14 | 164.62 | 140.50 | 130.44 | 124.00 | 99.58 | 84.34 | 59.78 | 39.01 | 27.66 | 18.40 | 15.68 | 14.27 |
FormFactor Inc's interest coverage ratio has fluctuated significantly over the past several quarters. The interest coverage ratio measures the company's ability to cover interest expenses with its operating income. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest expenses.
In the most recent quarter, ending December 31, 2023, FormFactor Inc's interest coverage ratio was 30.01, suggesting a strong ability to cover its interest obligations with operating income. However, in the preceding quarters of September 30, 2023 and June 30, 2023, the company had negative interest coverage ratios of -4.82 and -3.56 respectively, indicating that its operating income was insufficient to cover interest expenses during those periods.
It is worth noting that the interest coverage ratio improved in the quarters prior to the negative ratios, with significant peaks in September 30, 2022, and December 31, 2022, indicating a robust ability to cover interest expenses with operating income during those periods.
Overall, the fluctuating nature of FormFactor Inc's interest coverage ratio suggests variability in the company's ability to service its debt obligations with operating income. Investors and creditors should closely monitor this ratio to assess the company's financial health and ability to meet its interest obligations in the future.