Hasbro Inc (HAS)
Debt-to-equity 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-equity ratio | 2.73 | 1.30 | 1.24 | 1.57 | 1.35 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,965,800K ÷ $1,087,000K
= 2.73
The debt-to-equity ratio for Hasbro, Inc. has shown significant fluctuations over the past five years. In 2023, the ratio stood at 3.26, which signifies a substantial increase compared to the previous year's ratio of 1.40. This spike in the debt-to-equity ratio could indicate that Hasbro has taken on more debt relative to its equity position, potentially increasing its financial leverage.
Comparing the current ratio to 2021 and 2019, where the ratios were 1.33 and 1.35 respectively, it suggests a notable increase in leverage in 2023. However, in 2020, the ratio was relatively higher at 1.74 than the current year, indicating that Hasbro's leverage position in 2020 was higher than in 2023.
Overall, the trend in the debt-to-equity ratio for Hasbro, Inc. over the past five years indicates fluctuations in the company's capital structure and financial risk. The current ratio of 3.26 may raise concerns about the company's ability to manage its debt levels effectively and its overall financial stability. It would be essential for stakeholders to closely monitor Hasbro's debt levels and leverage going forward to assess the impact on the company's financial health and performance.