Harley-Davidson Inc (HOG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,140,600 | 11,492,500 | 11,051,100 | 12,010,600 | 10,528,200 |
| Total stockholders’ equity | US$ in thousands | 3,252,810 | 2,903,520 | 2,553,240 | 1,722,780 | 1,804,000 |
| Financial leverage ratio | 3.73 | 3.96 | 4.33 | 6.97 | 5.84 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $12,140,600K ÷ $3,252,810K
= 3.73
The financial leverage ratio of Harley-Davidson, Inc. has exhibited fluctuations over the past five years, with the ratio decreasing from 5.84 in 2019 to 3.73 in 2023. This indicates that the company has been gradually reducing its financial leverage over this period. A higher financial leverage ratio suggests that the company relies more on debt to finance its operations, while a lower ratio indicates a lower reliance on debt.
The decreasing trend in the financial leverage ratio could imply that Harley-Davidson, Inc. has been actively managing its debt levels, potentially reducing financial risk and improving financial stability. However, it is important to note that a very low financial leverage ratio may also indicate underutilization of debt for potential growth opportunities.
Overall, the decreasing financial leverage ratio of Harley-Davidson, Inc. suggests a strategic approach in balancing debt and equity in its capital structure, possibly leading to improved financial performance and risk management.
Peer comparison
Dec 31, 2023