Harley-Davidson Inc (HOG)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 15.36 | 3.73 | 3.95 | 4.33 | 6.97 |
Harley-Davidson Inc's solvency ratios indicate a strong financial position with consistently low debt levels over the years.
The Debt-to-assets ratio has remained at 0.00 from 2020 to 2024, suggesting that the company has not relied heavily on debt to finance its assets. This indicates that Harley-Davidson's assets are primarily funded through equity, which is a positive sign for solvency.
Similarly, the Debt-to-capital ratio and Debt-to-equity ratio have also stayed at 0.00 throughout the period, indicating that the company has minimal debt relative to its capital and equity. This implies that the company has a conservative capital structure and is less likely to face financial distress due to high debt obligations.
The Financial leverage ratio, which declined significantly from 6.97 in 2020 to 3.73 in 2023 before unexpectedly rising to 15.36 in 2024, shows the company's reliance on debt as a proportion of equity. However, the fluctuation in 2024 may need further investigation to understand the sudden increase.
Overall, based on these solvency ratios, Harley-Davidson Inc appears to have a stable financial position with low debt levels, indicating a strong ability to meet its financial obligations and sustain its operations in the long term.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 17.82 | 29.15 | 30.57 | 26.94 | 4.42 |
Harley-Davidson Inc's interest coverage ratio has shown a positive trend over the five-year period from 2020 to 2024. The ratio increased from 4.42 in 2020 to 26.94 in 2021, further improving to 30.57 in 2022. Although there was a slight decrease to 29.15 in 2023, the ratio remained at a healthy level. In the most recent year, 2024, the interest coverage ratio was 17.82, still indicating that the company is comfortable covering its interest expenses with its operating profits. Overall, the company's interest coverage ratio demonstrates a generally positive financial position and ability to meet its interest obligations.