Hasbro Inc (HAS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,540,900 | 9,295,900 | 10,037,800 | 10,818,400 | 8,855,600 |
| Total stockholders’ equity | US$ in thousands | 1,087,000 | 2,861,900 | 3,087,000 | 2,961,100 | 2,995,530 |
| Financial leverage ratio | 6.02 | 3.25 | 3.25 | 3.65 | 2.96 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,540,900K ÷ $1,087,000K
= 6.02
The financial leverage ratio of Hasbro, Inc. has shown a significant increase from 2.96 in 2019 to 6.16 in 2023. This indicates that the company has been relying more heavily on debt to finance its operations and growth over the years. The sharp increase in the financial leverage ratio may suggest that Hasbro has taken on more debt relative to its equity, potentially increasing its financial risk and leverage.
It is important to closely monitor Hasbro's future financial leverage ratios to assess the company's ability to manage its debt levels effectively and maintain a sustainable capital structure. A high financial leverage ratio can make the company more vulnerable to economic downturns or changes in interest rates, so investors and stakeholders should watch for any signs of strain on Hasbro's financial health.