Harmonic Inc (HLIT)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 768,206 | 710,018 | 693,686 | 591,523 | 587,327 |
| Total stockholders’ equity | US$ in thousands | 436,874 | 324,506 | 295,913 | 258,302 | 252,446 |
| Financial leverage ratio | 1.76 | 2.19 | 2.34 | 2.29 | 2.33 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $768,206K ÷ $436,874K
= 1.76
The financial leverage ratio for Harmonic, Inc. has shown fluctuations over the past five years.
In 2019, the financial leverage ratio was 2.33, indicating that the company's financial leverage was relatively high.
Subsequently, in 2020, the ratio decreased slightly to 2.29 before experiencing a more significant decline to 2.34 in 2021. This decrease could suggest that the company may have reduced its reliance on debt to finance its operations during this period.
However, in 2022, the financial leverage ratio increased to 2.19, which may indicate a reversal in the trend of decreasing leverage observed in the previous year.
Notably, in 2023, the financial leverage ratio further decreased to 1.76, marking a significant decline compared to the previous years. This reduction could imply that the company has taken steps to lower its debt levels, potentially leading to a stronger financial position with less reliance on borrowed funds.
Overall, the fluctuations in Harmonic, Inc.'s financial leverage ratio over the years reflect changes in the company's capital structure and debt management strategies. It is essential for stakeholders to closely monitor these trends to assess the company's financial risk and stability.
Peer comparison
Dec 31, 2023