Harmonic Inc (HLIT)
Debt-to-equity 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-equity ratio | 0.02 | 0.03 | 0.38 | 0.54 | 0.35 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $10,495K ÷ $436,874K
= 0.02
The debt-to-equity ratio of Harmonic, Inc. has shown a declining trend over the past five years, decreasing from 0.60 in 2019 to 0.30 in 2023. This suggests that the company has been reducing its reliance on debt financing and shifting towards a more equity-funded capital structure. A lower debt-to-equity ratio indicates a lower level of financial risk for the company, as it implies a greater proportion of equity relative to debt in its capital structure.
The decreasing trend in the debt-to-equity ratio could be a positive signal to investors and creditors, as it indicates improved financial health and stability. It may also suggest that the company has been able to generate sufficient internal funds to support its operations and growth without the need for significant debt. However, it is essential to consider the industry norms and the company's specific circumstances when evaluating the significance of the debt-to-equity ratio. Overall, Harmonic, Inc.'s decreasing debt-to-equity ratio reflects a more conservative approach to financing and potentially lower financial risk.
Peer comparison
Dec 31, 2023