Photronics Inc (PLAB)

Financial leverage ratio

		Oct 31, 2024	Jul 28, 2024	Apr 28, 2024	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
Total assets	US$ in thousands	1,712,060	1,645,100	1,603,450	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
Total stockholders’ equity	US$ in thousands	1,120,860	1,067,990	1,034,860	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
Financial leverage ratio		1.53	1.54	1.55	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

October 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,712,060K ÷ $1,120,860K
= 1.53

The financial leverage ratio of Photronics Inc has been relatively stable over the past few years, ranging from 1.46 to 1.60. The ratio indicates that the company is relying on a moderate level of financial leverage to support its operations and growth. A ratio above 1 suggests that the company has more debt than equity in its capital structure.

The slight fluctuations in the ratio over time may signify changes in the company's debt levels or financial strategy. A decreasing trend in the ratio could indicate a reduction in debt or an increase in equity, which may lead to lower financial risk but potentially limit the company's growth opportunities. Conversely, an increasing trend in the ratio may point to higher reliance on debt financing, possibly increasing financial risk but also providing more resources for expansion.

Overall, monitoring the financial leverage ratio is essential for assessing the company's capital structure and risk profile. Investors and stakeholders should consider the company's ability to manage its debt obligations and evaluate the potential impact of changes in leverage on the overall financial health of Photronics Inc.