Ichor Holdings Ltd (ICHR)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	241,183	293,218	285,253	191,522	169,304
Total assets	US$ in thousands	938,481	1,083,740	1,020,880	774,172	566,555
Debt-to-assets ratio		0.26	0.27	0.28	0.25	0.30

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $241,183K ÷ $938,481K
= 0.26

The debt-to-assets ratio of Ichor Holdings Ltd has been trending downwards over the past five years, indicating a decreasing reliance on debt to finance its assets. In 2023, the ratio stands at 0.26, down from 0.27 in 2022 and 0.30 in 2019. This suggests that the company has been effectively managing its debt levels in relation to its total assets. A lower debt-to-assets ratio typically signifies a lower financial risk and a stronger financial position as it implies that a smaller portion of the company's assets is funded by debt. Overall, the declining trend in the debt-to-assets ratio for Ichor Holdings Ltd is a positive indication of its financial health and prudent debt management strategies.