Ichor Holdings Ltd (ICHR)

Solvency ratios

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
Debt-to-assets ratio 0.26 0.27 0.28 0.28 0.27 0.27 0.28 0.28 0.28 0.19 0.19 0.20 0.25 0.32 0.33 0.31 0.30 0.33 0.37 0.37
Debt-to-capital ratio 0.30 0.32 0.33 0.33 0.33 0.34 1.45 1.48 0.36 0.25 0.26 0.27 0.32 0.43 0.45 0.43 0.43 0.45 0.47 0.48
Debt-to-equity ratio 0.43 0.48 0.49 0.49 0.50 0.52 — — 0.57 0.33 0.34 0.37 0.47 0.76 0.82 0.75 0.76 0.82 0.90 0.92
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

Based on the data provided, the solvency ratios of Ichor Holdings Ltd have shown some fluctuations over the past few quarters.

The debt-to-assets ratio has remained relatively stable, hovering around 0.27 to 0.28 in recent quarters. This indicates that approximately 26% to 28% of the company's assets are financed by debt.

The debt-to-capital ratio, on the other hand, has demonstrated more variability, ranging from 0.30 to 0.48. This ratio shows the proportion of the company's capital that is derived from debt, and the company seems to have experienced some fluctuations in this regard.

The debt-to-equity ratio has also shown variability, fluctuating between 0.43 to 0.92. This ratio reflects the extent to which the company's operations are funded by debt versus equity, with higher ratios indicating higher financial leverage.

Lastly, the financial leverage ratio has displayed fluctuations as well, ranging from 1.66 to 2.56. This ratio provides insight into the company's reliance on debt to finance its operations, with higher ratios suggesting higher levels of financial risk.

Overall, the analysis of Ichor Holdings Ltd's solvency ratios indicates that the company has been managing its debt levels to finance its operations, although there have been some fluctuations in recent quarters. It is essential for investors and stakeholders to monitor these ratios to assess the company's solvency and financial risk going forward.

Coverage ratios

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
Interest coverage -0.60 0.74 3.03 5.69 7.81 10.14 11.12 11.96 12.43 11.22 9.19 6.47 4.70 3.57 2.43 1.71 1.40 1.43 2.21 4.57

The interest coverage ratio measures a company's ability to meet its interest expenses through its operating income. For Ichor Holdings Ltd, the interest coverage has shown some fluctuation over the periods presented.

In the latest period, as of December 31, 2023, the interest coverage ratio was -0.60, indicating that the company's operating income was not sufficient to cover its interest expenses. This is a concerning sign as it implies financial distress and an inability to easily meet interest obligations.

Looking at the trend over the past few quarters, the interest coverage has ranged from negative values to a high of 12.43 in the first quarter of 2022. The trend shows a general improvement from the end of 2020 to mid-2022, where the company's operating income was covering interest expenses with a healthy margin.

However, the decline in interest coverage from mid-2022 to the end of 2023 raises red flags about the company's ability to generate enough operating income to cover its interest payments. The decreasing trend indicates potential financial difficulties if the company is unable to improve its operating performance or manage its debt levels effectively.

Overall, Ichor Holdings Ltd's interest coverage ratio has displayed inconsistency and a recent deterioration, suggesting a need for careful monitoring of the company's financial health and debt management practices.