Heidrick & Struggles International (HSII)
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 | — | — | — | 0 | 0 |
| Total stockholders’ equity | US$ in thousands | 462,278 | 410,646 | 336,020 | 267,602 | 309,115 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $462,278K)
= 0.00
The debt-to-capital ratio of Heidrick & Struggles International, Inc. has consistently been at 0.00 over the past five years (from 2019 to 2023). This implies that the company has been using zero debt in its capital structure during this period. Having a debt-to-capital ratio of 0.00 indicates that the company has not used any borrowed funds to finance its operations or investments relative to its total capital.
While a debt-to-capital ratio of 0.00 may show financial strength and lower financial risk, it also suggests a missed opportunity to potentially benefit from the tax advantages of debt financing. Additionally, a low debt level could limit the company's ability to undertake large-scale projects or acquisitions that could potentially enhance shareholder value in the long run.
Overall, the consistent debt-to-capital ratio of 0.00 for Heidrick & Struggles International, Inc. indicates a conservative approach to capital structure management, with a focus on maintaining a low debt level to minimize financial risk, albeit potentially missing out on leveraging debt for strategic growth opportunities.
Peer comparison
Dec 31, 2023