Photronics Inc (PLAB)

Debt-to-equity ratio

		Jan 28, 2024	Oct 31, 2023	Jul 30, 2023	Apr 30, 2023	Jan 29, 2023	Oct 31, 2022	Jul 31, 2022	May 1, 2022	Jan 30, 2022	Oct 31, 2021	Aug 1, 2021	May 2, 2021	Jan 31, 2021	Oct 31, 2020	Aug 2, 2020	May 3, 2020	Feb 2, 2020	Oct 31, 2019	Jul 28, 2019	Apr 28, 2019
Long-term debt	US$ in thousands	—	—	20,121	21,322	27,323	32,310	46,589	70,138	78,540	89,446	92,740	88,444	79,984	54,980	38,183	35,783	36,449	41,887	43,015	35,921
Total stockholders’ equity	US$ in thousands	1,022,960	975,008	961,212	928,047	920,765	831,527	850,318	834,399	838,425	823,692	817,892	821,392	815,502	804,962	790,242	769,191	770,676	769,892	763,394	763,568
Debt-to-equity ratio		0.00	0.00	0.02	0.02	0.03	0.04	0.05	0.08	0.09	0.11	0.11	0.11	0.10	0.07	0.05	0.05	0.05	0.05	0.06	0.05

January 28, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $1,022,960K
= 0.00

The debt-to-equity ratio of Photronics, Inc. has shown a decreasing trend over the past few quarters. In Q1 2024, the ratio stood at 0.02, indicating a low level of debt relative to equity. This is a significant improvement compared to the ratio of 0.05 in Q4 2022 and 0.10 in Q2 2022, suggesting that the company has been reducing its debt levels or increasing its equity position during this period.

The decreasing trend in the debt-to-equity ratio may imply that Photronics, Inc. is effectively managing its debt obligations and maintaining a healthy balance between debt and equity in its capital structure. A lower debt-to-equity ratio generally reflects lower financial risk and may indicate a stronger financial position for the company.

It is worth noting that a debt-to-equity ratio of 0.02 in Q1 2024 is relatively low, which could suggest that Photronics, Inc. has a conservative capital structure with a lower reliance on debt financing. This may be viewed positively by investors and creditors as it indicates lower leverage and potential financial stability for the company.

Overall, the decreasing trend in the debt-to-equity ratio of Photronics, Inc. reflects improved financial health with a lower level of debt relative to equity, which could be a positive indicator of the company's financial performance and risk management practices.