Hillenbrand Inc (HI)
Financial leverage ratio
| Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 5,238,700 | 5,271,500 | 5,570,500 | 5,584,900 | 5,547,700 | 4,733,800 | 4,830,500 | 4,885,900 | 3,867,500 | 3,893,700 | 4,065,000 | 3,994,600 | 4,014,900 | 4,037,400 | 3,917,100 | 4,015,300 | 3,987,400 | 4,029,900 | 4,190,700 | 4,420,700 |
| Total stockholders’ equity | US$ in thousands | 1,423,000 | 1,409,500 | 1,651,100 | 1,688,600 | 1,630,300 | 1,654,000 | 1,635,600 | 1,162,600 | 1,082,900 | 1,127,000 | 1,254,500 | 1,232,600 | 1,209,600 | 1,230,200 | 1,214,400 | 1,185,900 | 1,059,000 | 1,036,600 | 1,009,000 | 1,127,100 |
| Financial leverage ratio | 3.68 | 3.74 | 3.37 | 3.31 | 3.40 | 2.86 | 2.95 | 4.20 | 3.57 | 3.45 | 3.24 | 3.24 | 3.32 | 3.28 | 3.23 | 3.39 | 3.77 | 3.89 | 4.15 | 3.92 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,238,700K ÷ $1,423,000K
= 3.68
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. Hillenbrand Inc's financial leverage ratio has shown some fluctuations over the past few periods, ranging from 2.86 to 4.20. A higher ratio indicates higher financial leverage, indicating that the company is relying more on debt to finance its operations and investments.
The ratio has generally been above 3, indicating that Hillenbrand Inc has a relatively high level of debt in its capital structure. The slight fluctuations in the ratio suggest changes in the company's debt levels over time.
It is important for investors and stakeholders to monitor the financial leverage ratio to assess the company's ability to manage its debt obligations and financial risk. A higher ratio indicates higher financial risk, as increased debt levels could potentially lead to financial distress if not managed effectively.
Overall, the trend of Hillenbrand Inc's financial leverage ratio suggests that the company has been maintaining a moderate to high level of financial leverage in its capital structure, which may be a key consideration for investors evaluating the company's risk profile.
Peer comparison
Sep 30, 2024