Harley-Davidson Inc (HOG)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 3,252,810 | 2,903,520 | 2,553,240 | 1,722,780 | 1,804,000 |
| Debt-to-capital ratio | 0.61 | 0.61 | 0.64 | 0.77 | 0.74 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $4,990,590K ÷ ($4,990,590K + $3,252,810K)
= 0.61
The debt-to-capital ratio for Harley-Davidson, Inc. has shown a decreasing trend over the past five years, dropping from 0.80 in 2019 to 0.69 in 2023. This indicates that the company has been relying less on debt to finance its operations and investments relative to its total capital structure.
A decreasing debt-to-capital ratio typically suggests a healthier financial position, as it implies that the company has been able to reduce its debt burden and improve its capital structure by increasing equity financing or paying down debt. This trend can be viewed positively by investors, creditors, and other stakeholders, as it may indicate improved financial stability and reduced risk of financial distress.
Overall, the declining debt-to-capital ratio for Harley-Davidson, Inc. reflects a strategic effort to manage debt levels prudently and strengthen the company's financial position over the years. However, it is important to continue monitoring this ratio in conjunction with other financial metrics to assess the company's overall leverage and capital structure sustainability.
Peer comparison
Dec 31, 2023