TTM Technologies Inc (TTMI)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	3,323,660	3,323,600	3,025,550	2,895,940	3,560,930
Total stockholders’ equity	US$ in thousands	1,511,040	1,535,580	1,455,420	1,444,010	1,279,040
Financial leverage ratio		2.20	2.16	2.08	2.01	2.78

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,323,660K ÷ $1,511,040K
= 2.20

The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. TTM Technologies Inc's financial leverage ratio has fluctuated over the past five years, ranging from 2.01 to 2.78.

In 2019, the financial leverage ratio was relatively high at 2.78, indicating a higher level of debt relative to equity in the company's capital structure. This may suggest increased financial risk and higher interest expenses.

However, in subsequent years, the financial leverage ratio decreased, reaching 2.01 in 2020. This decline could indicate a reduction in the company's reliance on debt financing and a stronger equity position.

The ratio then increased slightly in 2021 and 2022, reaching 2.08 and 2.16 respectively. This may suggest a moderate shift towards more debt financing, potentially for strategic reasons such as funding expansion or acquisitions.

In the most recent year, 2023, the financial leverage ratio rose to 2.20. This uptick suggests a slight increase in the proportion of debt in the company's capital structure, which could be a signal of a more aggressive growth strategy or capital investment.

Overall, TTM Technologies Inc's financial leverage ratio has shown variability over the years, indicating fluctuations in the company's capital structure and potential shifts in its financing strategy. Further analysis and consideration of the company's overall financial health would be needed to fully assess the implications of these changes in the financial leverage ratio.