Hasbro Inc (HAS)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,965,800 | 3,711,200 | 3,824,200 | 4,660,000 | 4,046,460 |
| Total stockholders’ equity | US$ in thousands | 1,087,000 | 2,861,900 | 3,087,000 | 2,961,100 | 2,995,530 |
| Debt-to-capital ratio | 0.73 | 0.56 | 0.55 | 0.61 | 0.57 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,965,800K ÷ ($2,965,800K + $1,087,000K)
= 0.73
The debt-to-capital ratio of Hasbro, Inc. has displayed some fluctuations over the past five years. In 2023, the ratio increased to 0.77, indicating that the company relied more on debt to finance its operations compared to the previous year. This could raise concerns about the company's financial leverage and ability to manage its debt obligations.
In 2022, the ratio was 0.58, showing a decrease from the previous year. However, it increased again in 2023, suggesting a potential shift in the company's capital structure towards more debt financing. It is essential for investors and stakeholders to closely monitor this trend to assess Hasbro's ability to meet its debt commitments and maintain a healthy balance between debt and equity financing.
Comparing the current ratio to the ratios from 2021, 2020, and 2019, Hasbro's debt-to-capital ratio has varied within a range of 0.57 to 0.63 during this period. While these fluctuations are normal in the business cycle, it is crucial for the company to strike a balance between debt and equity to ensure sustainable growth and financial stability in the long run.