Heidrick & Struggles International (HSII)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,194,190 | 1,141,590 | 1,175,640 | 1,106,800 | 787,812 |
| Total stockholders’ equity | US$ in thousands | 452,817 | 462,278 | 410,646 | 336,020 | 267,602 |
| Financial leverage ratio | 2.64 | 2.47 | 2.86 | 3.29 | 2.94 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,194,190K ÷ $452,817K
= 2.64
The financial leverage ratio of Heidrick & Struggles International has shown some fluctuations over the years based on the provided data. The ratio increased from 2.94 as of December 31, 2020, to 3.29 as of December 31, 2021, indicating a higher level of financial leverage in the company's capital structure during that period. However, there was a decrease in the ratio to 2.86 as of December 31, 2022, followed by a further decline to 2.47 as of December 31, 2023. The ratio then slightly increased to 2.64 as of December 31, 2024.
These fluctuations in the financial leverage ratio suggest that Heidrick & Struggles International might have been adjusting its capital structure and debt levels over the years. A higher financial leverage ratio typically indicates a higher proportion of debt in the company's capital structure, which can amplify both returns and risks for investors. Conversely, a lower ratio indicates a lower reliance on debt financing. It would be essential to further analyze the reasons behind these changes in the financial leverage ratio to understand the company's capital management strategies and financial health effectively.
Peer comparison
Dec 31, 2024