Harmonic Inc (HLIT)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 436,874 | 324,506 | 295,913 | 258,302 | 252,446 |
| Debt-to-capital ratio | 0.02 | 0.03 | 0.27 | 0.35 | 0.26 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $10,495K ÷ ($10,495K + $436,874K)
= 0.02
The debt-to-capital ratio of Harmonic, Inc. has shown a decreasing trend over the past five years, indicating a relatively lower reliance on debt in the company's capital structure. In 2023, the ratio decreased to 0.23 from 0.29 in 2022, suggesting a significant improvement in the company's debt management. This reduction in the ratio reflects a more favorable mix of debt and equity financing, which generally signifies lower financial risk and increased financial stability for the company. However, it is important to note that even though the trend is positive, the ratio still indicates that debt constitutes a proportion of 23% in Harmonic's capital structure as of December 31, 2023. Monitoring this ratio in conjunction with other financial metrics can provide a comprehensive understanding of the company's overall financial health and risk profile.
Peer comparison
Dec 31, 2023