Harmonic Inc (HLIT)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 | 0.18 | 0.00 | 0.00 | 0.16 | 0.00 | 0.00 | 0.00 | 0.24 | 0.25 | 0.25 | 0.17 | 0.15 | 0.23 | 0.22 | 0.23 |
| Debt-to-capital ratio | 0.02 | 0.03 | 0.03 | 0.03 | 0.03 | 0.29 | 0.00 | 0.00 | 0.27 | 0.00 | 0.00 | 0.00 | 0.35 | 0.37 | 0.38 | 0.30 | 0.26 | 0.35 | 0.36 | 0.35 |
| 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 |
| 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 |
The solvency ratios of Harmonic, Inc. provide insights into the company's ability to meet its long-term financial obligations and the level of financial risk it carries.
The debt-to-assets ratio has shown a fluctuating trend over the past eight quarters, ranging from 0.17 to 0.24. This ratio indicates that, on average, 17% to 24% of the company's total assets are funded by debt. A lower ratio generally suggests a lower financial risk as it implies a higher proportion of assets are financed through equity.
The debt-to-capital ratio has also varied, ranging from 0.23 to 0.37. This ratio reflects the proportion of a company's capital that is funded by debt, with lower values indicating a higher reliance on equity financing. The trend in this ratio suggests some volatility in the capital structure of the company over the quarters analyzed.
The debt-to-equity ratio has exhibited a decreasing trend over the periods, declining from 0.30 to 0.59. This ratio compares the total debt of the company with its shareholders' equity and indicates the extent to which a company is leveraged. A lower ratio implies a lower reliance on debt for financing, which could signify a stronger financial position.
The financial leverage ratio has shown a consistent downward trend, decreasing from 2.46 to 1.76 over the quarters. This ratio measures the proportion of a company's assets that are financed by debt, with higher values suggesting higher financial leverage. The declining trend indicates a reduction in the company's reliance on debt to finance its operations.
Overall, the analysis of the solvency ratios of Harmonic, Inc. suggests that the company has been gradually decreasing its reliance on debt for financing its operations, which may indicate an improving financial stability and lower financial risk over time. However, it is essential to continue monitoring these ratios to assess the company's long-term financial health and sustainability.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 8.10 | 9.47 | 13.04 | 13.45 | 9.87 | 7.10 | 5.14 | 2.64 | 1.83 | 1.92 | 1.26 | 0.07 | -1.28 | -2.07 | 0.01 | 0.27 | 1.12 | 1.16 | -1.07 | -0.35 |
Interest coverage is a key financial ratio that measures a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio indicates a better ability to cover interest payments with operating earnings.
Looking at the data provided for Harmonic, Inc., we can observe a fluctuating trend in interest coverage over the past eight quarters. In Q1 2022, the interest coverage ratio was at 2.79, indicating that the company's operating earnings were sufficient to cover its interest expenses almost three times over. However, the ratio improved steadily in the following quarters, reaching a peak of 13.62 in Q2 2023, showing a significant increase in the company's ability to cover interest payments.
Overall, Harmonic, Inc. has shown a positive trend in interest coverage over the past two years, with the ratio consistently above 1, indicating that the company's earnings have been more than adequate to cover its interest expenses. This improvement is indicative of the company's strengthened financial position and ability to comfortably meet its debt obligations.