Ichor Holdings Ltd (ICHR)

Debt-to-equity 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-equity ratio 0.43 0.50 0.57 0.47 0.76

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $241,183K ÷ $564,677K
= 0.43

The debt-to-equity ratio of Ichor Holdings Ltd has been fluctuating over the past five years. In 2019, the ratio was relatively high at 0.76, indicating a higher level of debt compared to equity. However, the company managed to decrease this ratio in subsequent years, reaching the lowest point of 0.43 in 2023.

A decreasing trend in the debt-to-equity ratio from 2021 to 2023 suggests that the company has been reducing its reliance on debt financing in relation to equity. This can indicate improved financial health and potentially lower financial risk for the company.

Overall, the decreasing trend in the debt-to-equity ratio over the years reflects a positive shift towards a more balanced capital structure for Ichor Holdings Ltd. This indicates a potentially strengthening financial position and a more sustainable long-term outlook for the company in terms of its leverage and solvency.