Haemonetics Corporation (HAE)
Financial leverage ratio
Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets | US$ in thousands | 2,195,590 | 2,200,430 | 2,011,280 | 1,962,260 | 1,934,820 | 1,878,070 | 1,865,110 | 1,820,530 | 1,859,730 | 1,831,380 | 1,801,500 | 1,794,190 | 1,819,920 | 1,318,070 | 1,418,170 | 1,433,170 | 1,267,110 | 1,237,750 | 1,190,540 | 1,259,610 |
Total stockholders’ equity | US$ in thousands | 959,959 | 943,319 | 893,660 | 864,616 | 817,997 | 775,979 | 729,009 | 770,423 | 749,424 | 730,775 | 698,549 | 677,080 | 731,670 | 719,152 | 667,923 | 608,569 | 587,109 | 574,580 | 583,754 | 590,966 |
Financial leverage ratio | 2.29 | 2.33 | 2.25 | 2.27 | 2.37 | 2.42 | 2.56 | 2.36 | 2.48 | 2.51 | 2.58 | 2.65 | 2.49 | 1.83 | 2.12 | 2.35 | 2.16 | 2.15 | 2.04 | 2.13 |
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 some fluctuations over the past several quarters. The ratio has ranged between 1.83 and 2.65 during the period from December 31, 2019, to March 31, 2024.
On average, the financial leverage ratio has been around 2.33, indicating that the company has been using debt, on average, to finance its operations more than equity. A higher financial leverage ratio suggests that the company relies more on debt to finance its assets, which can magnify returns when the business is performing well but may also increase financial risk in times of economic downturns or lower profitability.
The ratio peaked at 2.65 in the second quarter of 2021, indicating relatively higher financial risk associated with elevated debt levels. However, the ratio decreased in subsequent periods before experiencing some fluctuations.
Overall, Haemonetics Corporation's financial leverage ratio suggests a moderate level of debt usage in its capital structure, indicating a balance between debt and equity financing. It is important for the company to monitor and manage its leverage ratio effectively to maintain financial stability and optimize its cost of capital.
Peer comparison
Mar 31, 2024