Harmonic Inc (HLIT)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.71 | 1.77 | 1.82 | 1.81 | 1.76 | 1.98 | 2.01 | 2.10 | 2.19 | 2.32 | 2.35 | 2.46 | 2.34 | 2.34 | 2.44 | 2.33 | 2.29 | 2.39 | 2.42 | 2.42 |
Harmonic Inc has consistently maintained a strong solvency position based on its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have been consistently at 0.00 over the years, indicating that the company has no significant debt relative to its assets, capital, or equity.
The Financial leverage ratio, which measures the extent of a company's assets that are financed through debt, has shown a declining trend from 2.42 in March 2020 to 1.71 in December 2024. This decline suggests that the company has been reducing its reliance on debt to finance its operations and investments, which is a positive sign for the company's long-term financial stability and risk management.
Overall, the solvency ratios indicate that Harmonic Inc has a strong financial standing with low debt levels and a conservative capital structure, which should provide investors and creditors with confidence in the company's ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.91 | 3.97 | -5.26 | 2.68 | 10.49 | 9.81 | 13.15 | 12.56 | 9.28 | 6.68 | 4.78 | 2.77 | 1.85 | 2.05 | 1.45 | 0.34 | -0.96 | -1.71 | 0.25 | 0.42 |
Harmonic Inc's interest coverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio is a measure of a company's ability to meet its interest obligations on its debt. A higher ratio indicates that the company is more capable of covering its interest payments.
Initially, from March 31, 2020, to December 31, 2021, Harmonic Inc's interest coverage ratio remained below 1, indicating that the company was not generating enough earnings to cover its interest expenses. This is concerning as it suggests financial distress and an increased risk of default.
From March 31, 2022, onwards, there was a significant improvement in the interest coverage ratio, reaching a peak of 13.15 on June 30, 2023. This indicates that the company's earnings were more than sufficient to cover its interest payments during this period.
However, the interest coverage ratio dropped in the subsequent quarters, with negative values in June 30, 2024, and lower values in March 31, 2024 and September 30, 2024. A declining interest coverage ratio could signify a potential strain on the company's financial health and its ability to meet interest obligations in the future.
Overall, it is essential for Harmonic Inc to maintain a healthy interest coverage ratio above 1 to demonstrate its ability to meet its interest expenses comfortably. Management should focus on improving profitability and managing debt levels to ensure the company's long-term financial stability.