Heidrick & Struggles International (HSII)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,194,190 | 1,145,780 | 1,016,320 | 965,470 | 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 |
| Total stockholders’ equity | US$ in thousands | 452,817 | 483,285 | 460,932 | 468,785 | 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 |
| Financial leverage ratio | 2.64 | 2.37 | 2.20 | 2.06 | 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 |
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 fluctuated over the period from March 31, 2020, to December 31, 2024. The ratio started at 2.54 in March 2020, increased to 3.29 by December 31, 2021, before decreasing and stabilizing around 2.5 to 2.8 in the following periods.
A financial leverage ratio above 1 indicates that the company is using debt to finance its operations, with a higher ratio suggesting higher leverage. The upward trend in the ratio from 2020 to 2021 may indicate an increased reliance on debt to fund operations or expansion.
It is important to monitor changes in the financial leverage ratio as high levels of leverage can amplify returns on equity but also increase financial risk, especially during economic downturns or periods of high interest rates. The company should ensure it maintains a balance between debt and equity to optimize its capital structure and financial health.
Peer comparison
Dec 31, 2024