Ichor Holdings Ltd (ICHR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Ichor Holdings Ltd has shown consistent strong solvency ratios over the years.
1. Debt-to-assets ratio: Throughout the reporting period from March 31, 2020, to December 31, 2024, the company maintained a debt-to-assets ratio of 0.00, indicating that the company's assets were primarily financed through equity rather than debt.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio remained constant at 0.00 from 2020 to 2024. This signifies that the company's capital structure was not heavily reliant on debt financing.
3. Debt-to-equity ratio: The debt-to-equity ratio also stayed consistently at 0.00 across all reporting periods. This implies that the company had no debt in relation to its equity, reflecting a strong financial position and low financial risk.
4. Financial leverage ratio: The financial leverage ratio declined from 2.46 in March 2020 to 1.43 in December 2024. This reduction indicates that the company's reliance on debt to finance its operations decreased over the years, leading to a lower financial risk and potentially improved creditworthiness.
In conclusion, Ichor Holdings Ltd has demonstrated robust financial strength and stability through its consistently low solvency ratios, reflecting a healthy balance sheet structure with minimal debt obligations.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -1.41 | -1.58 | -1.47 | -1.15 | -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 |
Ichor Holdings Ltd's interest coverage ratio has exhibited fluctuations over the periods provided. The interest coverage ratio indicates the company's ability to meet interest payments on its debt obligations.
From March 31, 2020, to December 31, 2021, the interest coverage ratio consistently improved, reaching its peak of 12.43 by the end of December 31, 2021. This upward trend reflects the company's ability to generate earnings sufficient to cover its interest expense multiple times over.
However, from March 31, 2022, to December 31, 2024, the interest coverage ratio declined. The ratio fell into negative territory from March 31, 2023, onward, indicating that the company's earnings were not sufficient to cover its interest expenses during these periods.
The significant decrease in the interest coverage ratio after December 31, 2021, suggests a deterioration in the company's financial health and its ability to service its debt. Investors and creditors may view this trend as a cause for concern, as it indicates a potential strain on Ichor Holdings Ltd's financial position and its ability to meet its interest obligations in the future.