Ichor Holdings Ltd (ICHR)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	564,677	587,496	500,715	411,689	221,416
Debt-to-capital ratio		0.30	0.33	0.36	0.32	0.43

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $241,183K ÷ ($241,183K + $564,677K)
= 0.30

The debt-to-capital ratio of Ichor Holdings Ltd has exhibited a declining trend over the past five years, from 0.43 in 2019 to 0.30 in 2023. This indicates that the company has been gradually reducing its reliance on debt to finance its operations relative to its overall capital structure. A lower debt-to-capital ratio suggests a healthier financial position, as the company is using less debt financing compared to its equity. This trend can be seen as a positive sign, as a lower debt-to-capital ratio may lead to lower financial risk and higher financial stability for the company. Overall, the improving debt-to-capital ratio reflects positively on Ichor Holdings Ltd's financial management and may indicate a stronger financial position compared to previous years.