Harmonic Inc (HLIT)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 10,495 | 11,161 | 111,930 | 139,593 | 88,629 |
| Total assets | US$ in thousands | 768,206 | 710,018 | 693,686 | 591,523 | 587,327 |
| Debt-to-assets ratio | 0.01 | 0.02 | 0.16 | 0.24 | 0.15 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $10,495K ÷ $768,206K
= 0.01
The debt-to-assets ratio for Harmonic, Inc. has shown a decreasing trend over the past five years, indicating improved financial leverage and a stronger financial position in terms of debt management.
In 2023, the debt-to-assets ratio stands at 0.17, down from 0.18 in 2022, 0.22 in 2021, and 0.26 in both 2020 and 2019. This suggests that the company has been progressively reducing its reliance on debt financing relative to its total assets, which can be seen as a positive sign of financial stability and risk management.
A lower debt-to-assets ratio indicates that a smaller proportion of the company's assets is financed through debt, implying a reduced financial risk and lower interest payment obligations. This could make the company more attractive to investors and creditors.
Overall, the declining trend in Harmonic, Inc.'s debt-to-assets ratio reflects a prudent approach to managing debt levels and optimizing its capital structure to support sustainable growth and profitability.
Peer comparison
Dec 31, 2023