Ichor Holdings Ltd (ICHR)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 995,564 | 938,481 | 1,083,740 | 1,020,880 | 774,172 |
| Total stockholders’ equity | US$ in thousands | 698,336 | 564,677 | 587,496 | 500,715 | 411,689 |
| Financial leverage ratio | 1.43 | 1.66 | 1.84 | 2.04 | 1.88 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $995,564K ÷ $698,336K
= 1.43
The financial leverage ratio of Ichor Holdings Ltd has shown a general downward trend over the past five years, decreasing from 1.88 in December 2020 to 1.43 in December 2024. This indicates that the company has been gradually reducing its reliance on debt financing relative to its equity. The decreasing trend suggests that the company may be strengthening its financial position by either paying down debt or increasing equity investments. A lower financial leverage ratio is generally perceived positively as it signifies a lower risk of financial distress and greater financial stability for the company. Overall, the decreasing trend in the financial leverage ratio of Ichor Holdings Ltd is a positive indicator of its financial health and prudent capital structure management.
Peer comparison
Dec 31, 2024