Heidrick & Struggles International (HSII)
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 | 1,141,590 | 1,041,250 | 964,455 | 891,465 | 1,175,640 | 1,073,250 | 982,066 | 895,572 | 1,106,800 | 948,632 | 832,066 | 680,606 | 787,812 | 713,309 | 788,358 | 792,530 | 844,173 | 776,623 | 704,010 | 671,982 |
| Total stockholders’ equity | US$ in thousands | 462,278 | 439,148 | 428,317 | 421,112 | 410,646 | 384,531 | 368,474 | 350,765 | 336,020 | 323,256 | 299,553 | 278,570 | 267,602 | 261,066 | 286,203 | 311,765 | 309,115 | 296,635 | 288,449 | 273,419 |
| Financial leverage ratio | 2.47 | 2.37 | 2.25 | 2.12 | 2.86 | 2.79 | 2.67 | 2.55 | 3.29 | 2.93 | 2.78 | 2.44 | 2.94 | 2.73 | 2.75 | 2.54 | 2.73 | 2.62 | 2.44 | 2.46 |
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 shown a decreasing trend from Q4 2022 to Q1 2023, indicating an improvement in the company's financial leverage position. The ratio decreased from 2.86 in Q4 2022 to 2.12 in Q1 2023. This suggests that the company is relying less on debt to finance its operations and investments.
A financial leverage ratio of 2.12 in Q1 2023 means that for every dollar of equity, the company has $2.12 of total assets. This ratio is favorable as it indicates that the company has a relatively lower level of debt compared to its equity. A lower financial leverage ratio is generally seen as less risky as it implies lower financial risk and lower potential for financial distress in case of adverse economic conditions.
Overall, the decreasing trend in the financial leverage ratio of Heidrick & Struggles International, Inc. over the provided quarters is a positive sign of the company's improving financial health and reduced reliance on debt to support its operations.
Peer comparison
Dec 31, 2023