Hawkins Inc (HWKN)
Debt-to-assets ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 88,818 | 101,731 | 115,644 | 88,845 | 49,751 |
| Total assets | US$ in thousands | 657,934 | 590,535 | 567,328 | 472,550 | 389,328 |
| Debt-to-assets ratio | 0.13 | 0.17 | 0.20 | 0.19 | 0.13 |
March 31, 2024 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $88,818K ÷ $657,934K
= 0.13
Hawkins Inc's debt-to-assets ratio has exhibited a decreasing trend over the past five years, starting at 0.13 as of March 31, 2020, increasing to its peak of 0.20 as of March 31, 2022, and then gradually decreasing to 0.13 again as of March 31, 2024.
A lower debt-to-assets ratio indicates that a company is relying less on debt financing and has a higher proportion of assets financed by equity. This can suggest a lower financial risk and greater financial stability, as the company has a reduced obligation to repay debt.
Overall, Hawkins Inc's decreasing debt-to-assets ratio implies a conservative approach to financing its operations, which may be perceived positively by investors and creditors due to the lower financial risk associated with the company. However, it is essential to consider other financial metrics and industry benchmarks to gain a more comprehensive understanding of the company's financial health and performance.
Peer comparison
Mar 31, 2024