Kulicke and Soffa Industries Inc (KLIC)

Financial leverage ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Total assets	US$ in thousands	1,240,160	1,499,780	1,588,600	1,601,630	1,054,570
Total stockholders’ equity	US$ in thousands	944,009	1,174,560	1,194,650	1,095,240	757,994
Financial leverage ratio		1.31	1.28	1.33	1.46	1.39

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,240,160K ÷ $944,009K
= 1.31

The financial leverage ratio of Kulicke and Soffa Industries Inc has fluctuated over the past five years. As of September 30, 2024, the financial leverage ratio stands at 1.31, indicating that the company's reliance on debt to finance its operations has slightly increased compared to the previous year. Despite the slight increase, the current ratio still remains within a reasonable range.

Looking back over the past five years, there seems to have been some variation in the financial leverage ratio. The ratio was at its lowest in September 2023 at 1.28, showing a decrease in leverage. However, it then increased to 1.33 in September 2022 before rising further to 1.46 in September 2021. This elevation in leverage in 2021 could suggest increased risk due to higher debt levels.

In the most recent year, although the financial leverage ratio has decreased from the peak in 2021, it remains higher than the levels seen in 2022 and 2023. This could imply that the company may still have a relatively higher reliance on debt compared to those years.

Overall, the fluctuation in Kulicke and Soffa Industries Inc's financial leverage ratio over the past five years indicates varying levels of debt utilization to support its operations. It is crucial for the company to closely monitor and manage its leverage to ensure it maintains a healthy balance between debt and equity financing.