TTM Technologies Inc (TTMI)

Financial leverage ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	3,323,660	3,266,500	3,148,490	3,176,040	3,323,600	3,292,890	3,214,650	3,044,150	3,025,550	3,047,630	3,025,740	2,965,830	2,895,940	3,148,410	3,594,670	3,524,120	3,560,930	3,498,360	3,440,110	3,414,280
Total stockholders’ equity	US$ in thousands	1,511,040	1,501,110	1,544,310	1,527,730	1,535,580	1,522,470	1,474,080	1,447,830	1,455,420	1,466,590	1,470,370	1,442,470	1,444,010	1,399,300	1,433,960	1,277,200	1,279,040	1,247,350	1,229,080	1,226,860
Financial leverage ratio		2.20	2.18	2.04	2.08	2.16	2.16	2.18	2.10	2.08	2.08	2.06	2.06	2.01	2.25	2.51	2.76	2.78	2.80	2.80	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 of TTM Technologies Inc has shown fluctuations over the past several quarters, ranging from 2.01 to 2.80. This ratio indicates the extent to which the company relies on debt financing to support its operations and growth.

The trend in the financial leverage ratio suggests that TTM Technologies Inc has been moderately leveraged, with the ratio hovering around 2.00 to 2.80. A financial leverage ratio of 2.00 implies that for every dollar of equity, the company has $2.00 of debt. Therefore, the company's capital structure is tilted towards debt financing rather than equity.

The ratio increased from 2.01 in Q1 2021 to peak at 2.80 in Q4 2019 before declining slightly to 2.08 in the most recent quarter, Dec 2023. This indicates a potential shift in the company's financing strategy, possibly reducing its reliance on debt in recent periods.

Overall, a financial leverage ratio of around 2.00 to 2.80 suggests that TTM Technologies Inc is utilizing debt as a significant source of financing, which can amplify returns but also increase financial risk. It is essential for investors to monitor this ratio over time to assess the company's ability to meet its debt obligations and manage its leverage effectively.