Heidrick & Struggles International (HSII)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,141,590 | 1,175,640 | 1,106,800 | 787,812 | 844,173 |
| Total stockholders’ equity | US$ in thousands | 462,278 | 410,646 | 336,020 | 267,602 | 309,115 |
| Financial leverage ratio | 2.47 | 2.86 | 3.29 | 2.94 | 2.73 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,141,590K ÷ $462,278K
= 2.47
The financial leverage ratio of Heidrick & Struggles International, Inc. has exhibited fluctuations over the past five years. The ratio decreased from 2.73 in 2019 to 2.47 in 2023, indicating a reduction in financial leverage. This reduction suggests that the company relied less on debt financing in 2023 compared to 2019.
In 2020, the financial leverage ratio increased to 2.94 before further increasing to 3.29 in 2021. These consecutive increases indicate that the company took on more debt relative to its equity in those years. However, in 2022, the ratio decreased to 2.86, suggesting a slight decrease in the company's reliance on debt financing compared to the previous year.
Overall, the trend in the financial leverage ratio of Heidrick & Struggles International, Inc. shows variability, with fluctuations in the degree of the company's leverage over the five-year period. Investors and stakeholders may need to closely monitor changes in this ratio to assess the company's capital structure and risk profile.
Peer comparison
Dec 31, 2023