Harley-Davidson Inc (HOG)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 4,990,590 | 4,457,050 | 4,595,620 | 5,932,930 | 5,124,830 |
| Total assets | US$ in thousands | 12,140,600 | 11,492,500 | 11,051,100 | 12,010,600 | 10,528,200 |
| Debt-to-assets ratio | 0.41 | 0.39 | 0.42 | 0.49 | 0.49 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $4,990,590K ÷ $12,140,600K
= 0.41
The debt-to-assets ratio of Harley-Davidson, Inc. has shown a declining trend over the past five years, decreasing from 0.71 in 2019 to 0.59 in 2023. This indicates that the company's level of debt relative to its total assets has been decreasing, suggesting improved financial health and potentially lower financial risk.
A decreasing debt-to-assets ratio may signify that Harley-Davidson has been effectively managing its debt levels in relation to its assets. This trend could reflect prudent financial management, such as reducing debt levels, improving asset utilization, or a combination of both.
The decreasing trend in the debt-to-assets ratio may also imply improved creditworthiness and financial stability. A lower ratio indicates less reliance on debt financing, which could enhance the company's ability to weather economic downturns or pursue growth opportunities without being heavily burdened by debt obligations.
Overall, the declining trend in Harley-Davidson's debt-to-assets ratio suggests positive developments in the company's financial structure and a potentially stronger financial position compared to previous years.
Peer comparison
Dec 31, 2023