Harley-Davidson Inc (HOG)

Solvency ratios

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
Debt-to-assets ratio 0.41 0.47 0.48 0.44 0.39 0.40 0.43 0.41 0.42 0.44 0.43 0.48 0.49 0.49 0.49 0.40 0.49 0.44 0.43 0.45
Debt-to-capital ratio 0.61 0.64 0.64 0.63 0.61 0.63 0.66 0.64 0.64 0.68 0.68 0.73 0.77 0.78 0.80 0.73 0.74 0.72 0.71 0.73
Debt-to-equity ratio 1.53 1.77 1.81 1.71 1.54 1.67 1.97 1.78 1.80 2.09 2.17 2.77 3.44 3.49 4.00 2.65 2.84 2.51 2.43 2.64
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

The solvency ratios of Harley-Davidson, Inc. provide insights into the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has been consistently around 0.59 to 0.60 over the past quarters, indicating that approximately 59-60% of the company's assets are financed by debt. This suggests that Harley-Davidson relies moderately on debt to finance its operations and investments.

The debt-to-capital ratio has also remained stable between 0.69 to 0.70, showing that around 69-70% of the company's capital structure is funded by debt. This ratio reflects the overall financial leverage of the company and its capacity to cover debt obligations.

The debt-to-equity ratio, however, has shown a slight increase from 2.19 in Q4 2022 to 2.64 in Q1 2022. This rise indicates an increase in financial risk as the company's level of debt compared to equity has increased over this period.

The financial leverage ratio, which indicates the proportion of assets funded by equity compared to debt, has also experienced an upward trend from 3.73 in Q4 2022 to 4.34 in Q1 2022. This indicates that the company is relying more on debt financing, which may increase financial risk.

Overall, while the debt-to-assets and debt-to-capital ratios suggest a moderate reliance on debt, the increasing debt-to-equity and financial leverage ratios signal a rising level of financial risk for Harley-Davidson, Inc. It would be essential for the company to closely monitor and manage its debt levels to ensure financial stability and solvency in the long run.

Coverage ratios

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
Interest coverage 29.53 30.11 32.93 34.19 30.88 30.19 25.86 25.85 27.45 23.19 21.11 8.40 0.49 4.96 4.46 16.48 18.94 18.40 19.19 21.27

Harley-Davidson, Inc.'s interest coverage ratio has shown a consistent and strong trend over the past eight quarters, displaying an ability to comfortably cover its interest expenses. The interest coverage ratio has ranged from a low of 24.74 in Q2 2022 to a high of 31.66 in Q1 2023. This indicates that the company's earnings before interest and taxes (EBIT) are significantly higher than its interest expenses, providing a substantial buffer to meet its financial obligations.

The consistently high interest coverage ratios demonstrate the company's financial stability and ability to manage its debt effectively. Investors and creditors may view this positively as it indicates a lower risk of default and a greater capacity to service its debt obligations. Furthermore, the upward trend in the interest coverage ratio over the past two years suggests improving financial health and may reflect operational efficiency and strong profitability.

Overall, Harley-Davidson, Inc.'s interest coverage ratio analysis indicates a healthy financial position with a strong ability to meet its interest payments, which bodes well for its long-term financial sustainability and growth prospects.