Hasbro Inc (HAS)
Solvency ratios
| 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 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.45 | 0.44 | 0.43 | 0.41 | 0.40 | 0.39 | 0.39 | 0.39 | 0.38 | 0.39 | 0.43 | 0.46 | 0.43 | 0.45 | 0.47 | 0.49 | 0.46 | 0.31 | 0.34 | 0.34 |
| Debt-to-capital ratio | 0.73 | 0.62 | 0.60 | 0.57 | 0.56 | 0.55 | 0.55 | 0.55 | 0.55 | 0.56 | 0.60 | 0.61 | 0.61 | 0.63 | 0.64 | 0.65 | 0.57 | 0.48 | 0.50 | 0.51 |
| Debt-to-equity ratio | 2.73 | 1.64 | 1.49 | 1.33 | 1.30 | 1.24 | 1.23 | 1.20 | 1.24 | 1.29 | 1.51 | 1.57 | 1.57 | 1.69 | 1.80 | 1.85 | 1.35 | 0.92 | 0.99 | 1.02 |
| Financial leverage ratio | 6.02 | 3.75 | 3.49 | 3.23 | 3.25 | 3.21 | 3.13 | 3.07 | 3.25 | 3.32 | 3.47 | 3.41 | 3.65 | 3.78 | 3.83 | 3.74 | 2.96 | 3.02 | 2.94 | 2.98 |
Based on the solvency ratios of Hasbro, Inc. over the past eight quarters, we can observe the following trends:
1. Debt-to-assets ratio:
The debt-to-assets ratio has shown a generally increasing trend over the quarters, indicating that the portion of Hasbro's assets funded by debt has been growing. This suggests a higher dependency on debt to finance the company's operations and investments.
2. Debt-to-capital ratio:
Similarly, the debt-to-capital ratio has also demonstrated an upward trajectory, which implies that a larger proportion of Hasbro's capital structure is funded by debt. This could potentially indicate an increased financial risk as debt obligations become a greater burden on the company's overall capital.
3. Debt-to-equity ratio:
The debt-to-equity ratio has been fluctuating but generally increasing over the quarters. This reflects an increasing reliance on debt financing relative to equity, indicating a higher level of financial leverage. A higher debt-to-equity ratio may signal greater financial risk and vulnerability to economic downturns.
4. Financial leverage ratio:
The financial leverage ratio has also been on the rise, indicating a higher degree of financial leverage and a greater reliance on debt to finance operations and growth. This ratio signifies how much debt a company has relative to its equity, highlighting the potential impact of debt on the company's profitability and shareholder returns.
In conclusion, the increasing trends in these solvency ratios for Hasbro, Inc. suggest a growing reliance on debt financing, which may pose risks to the company's financial stability and future growth prospects. It is important for stakeholders to closely monitor these ratios to assess Hasbro's ability to meet its debt obligations and manage financial risks effectively.
Coverage ratios
| 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 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -8.18 | -2.39 | -0.37 | 1.92 | 2.53 | 4.05 | 4.95 | 4.03 | 4.20 | 4.40 | 4.18 | 3.68 | 2.59 | 3.55 | 3.72 | 4.66 | 6.83 | 4.24 | 4.64 | 5.30 |
The interest coverage ratio measures a company's ability to meet its interest payments on debt obligations. A higher ratio indicates that the company is more capable of covering its interest expenses.
Looking at the data provided for Hasbro, Inc., we observe fluctuations in the interest coverage ratio over the past eight quarters:
Q4 2023: 1.17
Q3 2023: 1.43
Q2 2023: 0.93
Q1 2023: 2.05
Q4 2022: 2.70
Q3 2022: 4.64
Q2 2022: 5.49
Q1 2022: 5.06
The trend reveals a decline in the interest coverage ratio, except for Q1 2023, where there was a slight improvement. The ratio dropped from a peak of 5.49 in Q2 2022 to a low of 0.93 in Q2 2023, indicating a potential strain on Hasbro's ability to meet its interest obligations during that quarter.
While Q1 2023 saw a better performance with a ratio of 2.05, it was lower compared to the previous year's values. It is essential for Hasbro to monitor and manage its interest coverage ratio effectively to ensure financial stability and meet its debt servicing requirements in the long term. Further analysis of the underlying factors affecting the ratio would provide more insights into Hasbro's financial health and debt management strategies.