Haverty Furniture Companies Inc (HVT)
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 | 654,133 | 676,681 | 656,190 | 648,415 | 649,049 | 692,946 | 694,296 | 693,885 | 686,290 | 763,760 | 761,141 | 708,272 | 680,372 | 699,425 | 651,109 | 574,879 | 560,072 | 578,503 | 560,776 | 575,083 |
| Total stockholders’ equity | US$ in thousands | 308,366 | 316,416 | 305,583 | 296,412 | 289,399 | 283,609 | 266,726 | 260,400 | 255,970 | 291,541 | 289,412 | 270,314 | 252,967 | 267,377 | 264,378 | 252,447 | 260,503 | 268,722 | 267,260 | 281,926 |
| Financial leverage ratio | 2.12 | 2.14 | 2.15 | 2.19 | 2.24 | 2.44 | 2.60 | 2.66 | 2.68 | 2.62 | 2.63 | 2.62 | 2.69 | 2.62 | 2.46 | 2.28 | 2.15 | 2.15 | 2.10 | 2.04 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $654,133K ÷ $308,366K
= 2.12
The financial leverage ratio of Haverty Furniture Cos., Inc. has been fluctuating over the past eight quarters. The ratio ranged from a low of 2.12 in Q4 2023 to a high of 2.66 in Q1 2022. The trend indicates a general increase in leverage over this period, as the ratio has been gradually rising.
A financial leverage ratio above 1 indicates that the company is using debt to finance its operations, with higher values suggesting a greater reliance on debt for funding. In this case, the company's ratios consistently above 2 indicate a significant level of financial leverage, which may increase the company's financial risk.
The increasing trend in the financial leverage ratio could be a cause for concern as it may indicate a growing level of debt relative to equity over time. It suggests that the company is becoming more leveraged and may be exposed to risks associated with higher debt levels, such as increased interest payments and potential financial distress in case of economic downturns.
Overall, the analysis of the financial leverage ratio suggests that Haverty Furniture Cos., Inc. has been increasingly relying on debt to finance its operations over the past eight quarters, which may warrant further investigation into the company's overall financial health and sustainability.
Peer comparison
Dec 31, 2023