Haemonetics Corporation (HAE)

Financial leverage ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total assets	US$ in thousands	2,195,590	1,934,820	1,859,730	1,819,920	1,267,110
Total stockholders’ equity	US$ in thousands	959,959	817,997	749,424	731,670	587,109
Financial leverage ratio		2.29	2.37	2.48	2.49	2.16

March 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,195,590K ÷ $959,959K
= 2.29

The financial leverage ratio of Haemonetics Corporation has exhibited fluctuations over the past five fiscal years. The ratio has ranged from a low of 2.16 in March 2020 to a high of 2.49 in March 2021. However, despite some variability, the trend indicates a general increase in financial leverage from 2.16 in March 2020 to 2.29 in March 2024. This suggests that the company has been increasingly utilizing debt in its capital structure over the years.

A financial leverage ratio above 1 indicates that the company is relying more on debt to finance its operations than on equity. A ratio of 2.29 in March 2024 implies that for every dollar of equity, the company has $2.29 of debt. This level of leverage can magnify returns for shareholders when the company is performing well but can also increase the risk of financial distress if profitability declines.

Overall, Haemonetics Corporation's increasing financial leverage ratio may signal a deliberate strategy to leverage debt to fuel its growth or investment opportunities. However, it is essential for investors and stakeholders to monitor the company's ability to manage its debt levels effectively and sustain its financial stability in the long term.