Hillenbrand Inc (HI)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,547,700 | 3,867,500 | 4,014,900 | 3,987,400 | 2,228,600 |
| Total stockholders’ equity | US$ in thousands | 1,630,300 | 1,082,900 | 1,209,600 | 1,059,000 | 754,100 |
| Financial leverage ratio | 3.40 | 3.57 | 3.32 | 3.77 | 2.96 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,547,700K ÷ $1,630,300K
= 3.40
The financial leverage ratio of Hillenbrand Inc has fluctuated over the past five years, with a high of 3.77 in 2020 and a low of 2.96 in 2019. The ratio measures the extent to which the company relies on debt to finance its operations and assets. A higher financial leverage ratio indicates a greater reliance on debt, which can amplify returns but also increase financial risk. Conversely, a lower ratio suggests less reliance on debt financing, indicating a more conservative financial structure. The decreasing trend from 2020 to 2022 indicates a reduction in the company's reliance on debt, possibly due to a focus on reducing financial risk. However, the increase in 2023 suggests a reversal of this trend and a potential shift towards a more leveraged financial structure. It is important for stakeholders to monitor this ratio closely to assess the company's ability to manage its debt obligations and financial risk effectively.
Peer comparison
Sep 30, 2023