Photronics Inc (PLAB)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,582,840 | 1,526,220 | 1,503,340 | 1,451,020 | 1,441,680 | 1,315,830 | 1,349,600 | 1,331,890 | 1,335,250 | 1,294,200 | 1,281,760 | 1,265,990 | 1,232,060 | 1,188,180 | 1,195,840 | 1,133,890 | 1,125,460 | 1,118,660 | 1,114,200 | 1,085,240 |
| 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 |
| Financial leverage ratio | 1.55 | 1.57 | 1.56 | 1.56 | 1.57 | 1.58 | 1.59 | 1.60 | 1.59 | 1.57 | 1.57 | 1.54 | 1.51 | 1.48 | 1.51 | 1.47 | 1.46 | 1.45 | 1.46 | 1.42 |
January 28, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,582,840K ÷ $1,022,960K
= 1.55
Based on the financial leverage ratio data provided for Photronics, Inc. over the past several quarters, there has been a consistent uptrend in the leverage ratio. The ratio has gradually increased from 1.55 in Q1 2024 to 1.60 in Q2 2022.
A financial leverage ratio above 1 indicates that the company relies more on debt to finance its operations than on equity. In this case, the increasing trend in the ratio suggests that Photronics, Inc. has been taking on more debt relative to its equity over time.
A higher financial leverage ratio typically implies higher financial risk for the company, as the increased debt levels can lead to higher interest payments and potential difficulties in meeting debt obligations. Investors and creditors may view a rising leverage ratio negatively, as it indicates a potentially riskier financial position for the company.
It would be advisable for management to closely monitor the company's debt levels and assess the impact of the increasing leverage ratio on the overall financial health and stability of Photronics, Inc.
Peer comparison
Jan 28, 2024