Hasbro Inc (HAS)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.45 | 0.40 | 0.38 | 0.43 | 0.46 |
| Debt-to-capital ratio | 0.73 | 0.56 | 0.55 | 0.61 | 0.57 |
| Debt-to-equity ratio | 2.73 | 1.30 | 1.24 | 1.57 | 1.35 |
| Financial leverage ratio | 6.02 | 3.25 | 3.25 | 3.65 | 2.96 |
Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Hasbro, Inc.'s solvency ratios over the past five years exhibit fluctuating trends.
The debt-to-assets ratio has shown an increasing trend from 0.40 in 2021 to 0.53 in 2023, indicating that a higher proportion of the company's assets are financed by debt.
The debt-to-capital ratio has also seen an upward trend, from 0.57 in 2021 to 0.77 in 2023, signifying a higher reliance on debt to fund the company's operations.
The debt-to-equity ratio portrays a significant increase from 1.33 in 2021 to 3.26 in 2023, implying that the company has substantially higher debt in relation to equity, which may pose a risk in terms of financial stability.
The financial leverage ratio has been volatile, reaching a peak of 6.16 in 2023 compared to 2.96 in 2019, indicating that the company is utilizing higher levels of debt to finance its operations.
Overall, the increasing trend in these solvency ratios suggests a growing reliance on debt financing by Hasbro, Inc., which may raise concerns about the company's long-term financial health and ability to meet its debt obligations. Investors and stakeholders should closely monitor these ratios for any signs of excessive leverage that could impact the company's solvency and sustainability in the future.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -8.18 | 2.53 | 4.20 | 2.59 | 6.83 |
Interest coverage is a financial ratio that indicates a company's ability to meet its interest obligations on debt using its earnings before interest and taxes (EBIT). A higher interest coverage ratio implies that the company is better positioned to cover its interest payments.
In the case of Hasbro, Inc., the interest coverage ratio has experienced fluctuations over the past five years. In 2023, the interest coverage ratio decreased significantly to 1.17 from 2.70 in 2022. This suggests that Hasbro's ability to cover its interest expenses with its EBIT declined in 2023, potentially indicating a higher interest burden relative to its earnings.
Looking back, in 2021, Hasbro's interest coverage ratio decreased to 5.00 from 3.72 in 2020. This improvement in 2021 indicates that the company's earnings were sufficient to cover its interest payments more comfortably than in the previous year. The highest interest coverage ratio was recorded in 2019 at 9.09, showcasing a strong ability to meet interest obligations with earnings at that time.
Overall, the declining trend in Hasbro's interest coverage ratio since 2019 may raise concerns about the company's ability to service its interest payments effectively. Further analysis of Hasbro's financial health and risk management strategies would be beneficial to assess the sustainability of its interest coverage in the future.