Haynes International Inc (HAYN)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 706,281 | 632,295 | 546,455 | 560,724 | 593,800 |
| Total stockholders’ equity | US$ in thousands | 434,324 | 375,488 | 343,321 | 301,501 | 296,275 |
| Financial leverage ratio | 1.63 | 1.68 | 1.59 | 1.86 | 2.00 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $706,281K ÷ $434,324K
= 1.63
The financial leverage ratio measures the extent to which a company relies on debt financing rather than equity. Haynes International Inc.'s financial leverage ratio has exhibited fluctuation over the past five years. The ratio decreased from 2.00 in 2019 to 1.86 in 2020, indicating a reduction in the company's reliance on debt financing. However, the ratio increased to 1.68 in 2022 before rising to 1.63 in 2023. These fluctuations suggest that the company's capital structure has been evolving, with varying levels of debt and equity financing. It is important to consider the implications of these changes, including potential impacts on the company's risk profile and financial stability.
Peer comparison
Sep 30, 2023