Harmonic Inc (HLIT)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 796,506 | 768,206 | 710,018 | 693,686 | 591,523 |
| Total stockholders’ equity | US$ in thousands | 465,258 | 436,874 | 324,506 | 296,796 | 258,302 |
| Financial leverage ratio | 1.71 | 1.76 | 2.19 | 2.34 | 2.29 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $796,506K ÷ $465,258K
= 1.71
The financial leverage ratio of Harmonic Inc has shown fluctuations over the past five years. It was relatively stable from December 31, 2020, to December 31, 2022, ranging between 2.19 and 2.34. However, a notable decrease was observed by December 31, 2023, where the ratio dropped to 1.76, indicating a decrease in the company's reliance on debt to finance its operations. This trend continued into December 31, 2024, with a further decline to 1.71.
The decreasing trend in the financial leverage ratio suggests that Harmonic Inc has been reducing its dependence on debt in its capital structure over the years. This could imply improved financial stability and lower financial risk for the company, as lower leverage ratios indicate a lower proportion of debt relative to equity in the company's capital structure. Overall, the trend in the financial leverage ratio indicates a positive transition towards a more conservative capital structure for Harmonic Inc.
Peer comparison
Dec 31, 2024