Harmonic Inc (HLIT)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 768,206 | 673,811 | 690,352 | 703,815 | 710,018 | 697,871 | 698,459 | 700,445 | 693,686 | 643,866 | 651,240 | 609,709 | 591,523 | 559,422 | 557,521 | 576,275 | 587,327 | 568,206 | 526,721 | 514,177 |
| 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 |
| Financial leverage ratio | 1.76 | 1.98 | 2.01 | 2.10 | 2.19 | 2.32 | 2.35 | 2.46 | 2.34 | 2.35 | 2.44 | 2.35 | 2.29 | 2.39 | 2.42 | 2.44 | 2.33 | 2.36 | 2.48 | 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 been showing a decreasing trend over the past eight quarters. The ratio started at a relatively high level of 2.46 in Q1 2022 and has been gradually declining to 1.76 in Q4 2023. This decreasing trend indicates that the company has been reducing its reliance on debt financing compared to its equity as time has progressed.
A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. Therefore, Harmonic, Inc. has been gradually reducing its debt levels relative to its equity over the past quarters. This could be a positive sign as it indicates a potential improvement in the company's financial risk profile and lower financial leverage.
It is important to continue monitoring the trend in the financial leverage ratio to assess the effectiveness of Harmonic, Inc.'s capital structure management and its ability to balance debt and equity to optimize its cost of capital and risk levels.
Peer comparison
Dec 31, 2023