Ichor Holdings Ltd (ICHR)

Debt-to-capital ratio

		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
Long-term debt	US$ in thousands	241,183	272,942	284,701	291,459	293,218	294,977	296,736	283,495	285,253	158,810	157,630	159,576	191,522	193,467	195,413	172,359	169,304	169,250	183,008	184,954
Total stockholders’ equity	US$ in thousands	564,677	572,679	577,303	593,464	587,496	569,845	-91,578	-91,578	500,715	480,656	458,483	431,062	411,689	254,667	238,190	229,520	221,416	207,190	203,731	201,680
Debt-to-capital ratio		0.30	0.32	0.33	0.33	0.33	0.34	1.45	1.48	0.36	0.25	0.26	0.27	0.32	0.43	0.45	0.43	0.43	0.45	0.47	0.48

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 for Ichor Holdings Ltd has exhibited fluctuations over the past several quarters. The ratio measures the proportion of the company's capital structure that is comprised of debt. From December 31, 2019, to December 31, 2020, the ratio increased steadily from 0.45 to 0.48, indicating a rise in debt relative to total capital.

However, in the subsequent quarters, there was a significant decline in the debt-to-capital ratio, reaching a low of 0.25 on September 30, 2021. This suggests a reduction in debt levels or an increase in equity in the capital structure during that period.

Nevertheless, from June 30, 2022, to September 30, 2022, there was a sharp spike in the debt-to-capital ratio from 0.36 to 1.45, indicating a substantial increase in debt relative to capital. This anomalous increase could be due to various factors such as debt refinancing, new debt issuance, or a decline in equity.

Subsequently, the ratio fluctuated around 0.3 to 0.34 from December 31, 2022, to December 31, 2023, remaining relatively stable compared to the previous significant fluctuations. It is important for investors and stakeholders to monitor the debt-to-capital ratio to assess Ichor Holdings Ltd's leverage and financial risk profile.