Hawkins Inc (HWKN)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 406,026 | 350,016 | 302,601 | 265,246 | 233,484 |
| Debt-to-equity ratio | 0.22 | 0.29 | 0.38 | 0.33 | 0.21 |
March 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $88,818K ÷ $406,026K
= 0.22
The debt-to-equity ratio of Hawkins Inc has shown a declining trend over the past five years, indicating a strengthening financial position in terms of leverage. As of March 31, 2024, the company's debt-to-equity ratio stood at 0.22, which suggests that for every dollar of equity, there is $0.22 of debt.
Comparing this ratio to previous years, we see a gradual decrease from 0.29 in 2023 to 0.22 in 2024. This decline indicates that the company has been reducing its reliance on debt financing relative to equity financing.
In 2022, the debt-to-equity ratio was higher at 0.38, indicating a higher proportion of debt in the capital structure compared to equity. However, the ratio improved in 2023 and 2024, signifying a positive trend towards a more balanced capital structure.
Overall, the decreasing trend in the debt-to-equity ratio suggests that Hawkins Inc is effectively managing its debt levels and strengthening its financial position by relying more on equity financing.
Peer comparison
Mar 31, 2024