Vicor Corporation (VICR)
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 | 594,887 | 584,135 | 560,661 | 544,255 | 536,901 | 527,102 | 513,356 | 489,349 | 477,205 | 458,830 | 446,376 | 417,621 | 396,239 | 380,119 | 372,734 | 246,725 | 240,727 | 237,910 | 230,603 | 225,004 |
| Total stockholders’ equity | US$ in thousands | 540,869 | 528,548 | 500,777 | 480,405 | 464,088 | 452,624 | 444,863 | 431,906 | 423,599 | 411,355 | 392,586 | 370,164 | 350,820 | 337,262 | 326,324 | 206,681 | 205,562 | 202,269 | 193,863 | 190,243 |
| Financial leverage ratio | 1.10 | 1.11 | 1.12 | 1.13 | 1.16 | 1.16 | 1.15 | 1.13 | 1.13 | 1.12 | 1.14 | 1.13 | 1.13 | 1.13 | 1.14 | 1.19 | 1.17 | 1.18 | 1.19 | 1.18 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $594,887K ÷ $540,869K
= 1.10
The financial leverage ratio measures the extent to which a company is using debt to finance its operations. A higher financial leverage ratio indicates higher levels of debt relative to equity.
Analyzing the financial leverage ratio of Vicor Corp. over the past eight quarters, the ratio has been relatively stable, ranging from 1.10 to 1.16. This indicates that Vicor Corp. has maintained a consistent balance between debt and equity in its capital structure during this period.
The gradual increase in the financial leverage ratio from Q4 2022 to Q1 2023, followed by a slight decline in subsequent quarters, suggests that the company may have slightly increased its reliance on debt initially but then managed to reduce it. Overall, the financial leverage ratio staying around 1.10 to 1.16 indicates that Vicor Corp. has maintained a moderate level of leverage in its capital structure, which may be an intentional strategic choice to optimize its cost of capital and maximize returns for shareholders.
Peer comparison
Dec 31, 2023