Harmonic Inc (HLIT)
Debt-to-capital ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 465,258 | 436,874 | 324,506 | 296,796 | 258,302 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $465,258K)
= 0.00
The debt-to-capital ratio of Harmonic Inc has been consistently at 0.00 for the past five years, indicating that the company has not utilized any debt to finance its operations relative to its total capital. This suggests that Harmonic Inc has been relying primarily on equity financing, which might imply a lower financial risk as the company is not burdened with heavy debts. However, it is important to note that a debt-to-capital ratio of 0.00 may also signal underutilization of debt as a financial leverage tool, potentially missing out on the tax benefits of debt financing. Overall, a stable debt-to-capital ratio of 0.00 indicates a conservative capital structure strategy by Harmonic Inc over the past five years.
Peer comparison
Dec 31, 2024