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.
Peer comparison
Dec 31, 2023