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