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.