Ichor Holdings Ltd (ICHR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.43 | 1.66 | 1.84 | 2.04 | 1.88 |
Based on the provided data, Ichor Holdings Ltd appears to have a very strong solvency position as indicated by its solvency ratios.
- Debt-to-assets ratio: The company's debt-to-assets ratio has consistently been at 0.00 over the five-year period from 2020 to 2024. This indicates that the company has no debt obligations in relation to its total assets, which is a positive sign of financial stability.
- Debt-to-capital ratio: Similarly, the debt-to-capital ratio has remained at 0.00 throughout the period. This suggests that Ichor Holdings Ltd has not been relying on debt to finance its capital structure, which can reduce financial risk.
- Debt-to-equity ratio: The debt-to-equity ratio also stands at 0.00 across all years. This implies that the company's debt levels are negligible compared to its equity, reflecting a healthy balance sheet structure.
- Financial leverage ratio: The financial leverage ratio has shown a decreasing trend from 1.88 in 2020 to 1.43 in 2024. A decreasing trend indicates that the company is becoming less reliant on debt to fund its operations and investments, which can contribute to lower financial risk.
In conclusion, the solvency ratios of Ichor Holdings Ltd demonstrate a strong financial position with minimal debt levels and healthy capital structure. The decreasing trend in the financial leverage ratio further supports the company's prudent financial management.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -0.95 | -0.56 | 7.81 | 12.43 | 4.70 |
Ichor Holdings Ltd's interest coverage ratio has shown some fluctuations over the past years. As of December 31, 2020, the interest coverage ratio was 4.70, indicating that the company's earnings before interest and taxes (EBIT) were able to cover its interest expense approximately 4.7 times.
This ratio improved significantly by December 31, 2021, reaching 12.43, suggesting a stronger ability to meet interest obligations. However, by December 31, 2022, the interest coverage ratio decreased to 7.81, although it remained at a relatively healthy level.
The financial health of the company deteriorated notably by December 31, 2023, as the interest coverage ratio turned negative to -0.56. A negative interest coverage ratio implies that the company's EBIT was insufficient to cover its interest expenses, raising concerns about financial distress.
This negative trend continued into December 31, 2024, with an even lower interest coverage ratio of -0.95, exacerbating the company's financial challenges. In summary, while the interest coverage ratio fluctuated over the years, the recent negative values indicate a concerning situation regarding Ichor Holdings Ltd's ability to meet its interest obligations.