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.