Ichor Holdings Ltd (ICHR)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 938,481 | 1,083,740 | 1,020,880 | 774,172 | 566,555 |
| Total stockholders’ equity | US$ in thousands | 564,677 | 587,496 | 500,715 | 411,689 | 221,416 |
| Financial leverage ratio | 1.66 | 1.84 | 2.04 | 1.88 | 2.56 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $938,481K ÷ $564,677K
= 1.66
The financial leverage ratio of Ichor Holdings Ltd has shown a decreasing trend over the past five years, decreasing from 2.56 in 2019 to 1.66 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments over the years. Lower financial leverage ratios suggest a lower level of financial risk as the company is using less debt relative to its equity to fund its activities. However, it is essential to assess the company's overall financial health and performance in conjunction with other financial ratios and indicators for a comprehensive analysis.
Peer comparison
Dec 31, 2023