Harley-Davidson Inc (HOG)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 12,140,600 | 12,462,200 | 12,015,600 | 12,029,600 | 11,492,500 | 11,927,600 | 12,121,600 | 10,894,600 | 11,051,100 | 11,199,800 | 10,909,200 | 11,339,000 | 12,010,600 | 12,532,300 | 13,156,200 | 11,139,900 | 10,528,200 | 10,576,200 | 10,740,300 | 10,580,600 |
| Total stockholders’ equity | US$ in thousands | 3,252,810 | 3,310,020 | 3,188,900 | 3,093,060 | 2,903,520 | 2,840,210 | 2,635,150 | 2,509,100 | 2,553,240 | 2,333,890 | 2,184,270 | 1,976,390 | 1,722,780 | 1,769,900 | 1,623,700 | 1,691,980 | 1,804,000 | 1,836,220 | 1,910,640 | 1,797,610 |
| Financial leverage ratio | 3.73 | 3.76 | 3.77 | 3.89 | 3.96 | 4.20 | 4.60 | 4.34 | 4.33 | 4.80 | 4.99 | 5.74 | 6.97 | 7.08 | 8.10 | 6.58 | 5.84 | 5.76 | 5.62 | 5.89 |
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 been fluctuating over the past eight quarters, ranging from 3.73 to 4.60. A higher financial leverage ratio indicates that a company relies more on debt financing rather than equity, which may increase financial risk.
In this case, we observe that the financial leverage ratio has been gradually increasing from Q4 2022 to Q2 2022, peaking at 4.60 in Q2 2022, and then slightly declining in the subsequent quarters. A ratio above 4 suggests that the company has a higher proportion of debt in its capital structure compared to equity.
It is important for investors and stakeholders to monitor changes in the financial leverage ratio as it can impact the company's ability to meet its financial obligations and manage its debt levels effectively. A decreasing trend in the financial leverage ratio may indicate a reduction in financial risk, while an increasing trend may raise concerns about the company's debt management strategies.
Peer comparison
Dec 31, 2023