Ichor Holdings Ltd (ICHR)

Financial leverage 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
Total assets	US$ in thousands	938,481	994,384	1,003,360	1,040,150	1,083,740	1,102,740	1,065,700	1,020,360	1,020,880	828,537	822,449	782,209	774,172	605,441	598,876	564,019	566,555	506,866	489,952	495,389
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
Financial leverage ratio		1.66	1.74	1.74	1.75	1.84	1.94	—	—	2.04	1.72	1.79	1.81	1.88	2.38	2.51	2.46	2.56	2.45	2.40	2.46

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 some fluctuation over the periods indicated. The ratio measures the extent to which the company relies on debt to finance its operations and growth. A higher financial leverage ratio indicates a higher level of debt relative to equity.

From the data provided, the financial leverage ratio ranged from a low of 1.66 to a high of 2.56. The ratio has generally been trending upwards, reaching a peak at 2.56 in the period ending March 31, 2020. This suggests that over time, the company has been taking on more debt to fund its activities.

It's worth noting that the financial leverage ratio can vary depending on industry norms and the company's specific circumstances. A higher ratio may imply higher financial risk, as increased debt levels can lead to higher interest payments and financial instability in times of economic downturns.

Overall, the trend of increasing financial leverage ratios indicates that Ichor Holdings Ltd has been relying more on debt to support its growth and operations. Investors and stakeholders should closely monitor this trend to assess the company's ability to manage its debt levels effectively and sustain its financial health in the long run.