Harmonic Inc (HLIT)
Debt-to-equity 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-equity ratio | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.41 | 0.00 | 0.00 | 0.38 | 0.00 | 0.00 | 0.00 | 0.54 | 0.59 | 0.61 | 0.42 | 0.35 | 0.54 | 0.56 | 0.53 |
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 for Harmonic, Inc. has shown a decreasing trend over the past eight quarters, indicating a favorable position in terms of financing structure. The ratio has declined from 0.59 in Q1 2022 to 0.30 in Q4 2023, signifying a significant improvement in the company's leverage position. This decreasing trend suggests that the company is relying less on debt to finance its operations and is gradually strengthening its equity base.
A lower debt-to-equity ratio is generally considered positive as it indicates lower financial risk and greater financial stability. Harmonic, Inc. has been successful in reducing its reliance on debt over the quarters, which can be seen as a positive signal for investors and creditors. The company's ability to lower its debt levels while maintaining or increasing its equity reflects effective financial management and prudent capital allocation decisions.
Overall, the consistent decline in Harmonic, Inc.'s debt-to-equity ratio demonstrates a positive trend in the company's capital structure and financial health, positioning it well for sustainable growth and financial stability in the future.
Peer comparison
Dec 31, 2023