Harmonic Inc (HLIT)
Debt-to-capital ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 10,495 | 9,992 | 10,539 | 11,350 | 11,161 | 123,856 | — | — | 111,930 | — | — | — | 139,593 | 137,725 | 140,548 | 99,880 | 88,629 | 130,217 | 118,070 | 116,413 |
| Total stockholders’ equity | US$ in thousands | 436,874 | 340,800 | 342,801 | 335,786 | 324,506 | 300,621 | 296,836 | 284,653 | 295,913 | 273,681 | 267,324 | 259,770 | 258,302 | 234,457 | 230,282 | 236,322 | 252,446 | 241,050 | 212,066 | 220,561 |
| Debt-to-capital ratio | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.29 | 0.00 | 0.00 | 0.27 | 0.00 | 0.00 | 0.00 | 0.35 | 0.37 | 0.38 | 0.30 | 0.26 | 0.35 | 0.36 | 0.35 |
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
Based on the data provided, Harmonic, Inc.'s debt-to-capital ratio has exhibited some fluctuations over the past eight quarters. The ratio ranged from a low of 0.23 in Q4 2023 to a high of 0.37 in Q1 2022.
The trend indicates that the company's reliance on debt relative to its total capital has decreased in the recent quarters, as seen in the decreasing ratios from 0.37 in Q1 2022 to 0.23 in Q4 2023. A lower debt-to-capital ratio generally signals a lower financial risk, as it suggests the company has a lower level of debt financing relative to its total capital structure.
Overall, the declining trend in debt-to-capital ratio for Harmonic, Inc. implies that the company has been effectively managing its capital structure by potentially reducing its reliance on debt to fund its operations or investments. Investors and stakeholders may view this trend positively as it indicates a healthier financial position with potentially lower risks associated with debt obligations.
Peer comparison
Dec 31, 2023