Ichor Holdings Ltd (ICHR)

Financial leverage ratio

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Total assets US$ in thousands 995,564 975,902 947,689 957,388 938,481 994,384 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
Total stockholders’ equity US$ in thousands 698,336 697,275 694,876 697,232 564,677 572,679 577,303 593,464 587,496 569,845 537,324 511,829 500,715 480,656 458,483 431,062 411,689 254,667 238,190 229,520
Financial leverage ratio 1.43 1.40 1.36 1.37 1.66 1.74 1.74 1.75 1.84 1.94 1.98 1.99 2.04 1.72 1.79 1.81 1.88 2.38 2.51 2.46

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 declining trend from March 31, 2020, to December 31, 2024. The ratio decreased from 2.46 on March 31, 2020, to 1.43 on December 31, 2024. This indicates that the company's reliance on debt to finance its operations has been decreasing over the years, suggesting a more conservative capital structure. A lower financial leverage ratio implies lower financial risk and a greater ability to meet financial obligations, as the company has less debt relative to its equity. This trend may be seen positively by investors and creditors as it reflects a more stable and sustainable financial position for Ichor Holdings Ltd.