Hawkins Inc (HWKN)
Financial leverage ratio
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 657,934 | 590,535 | 567,328 | 472,550 | 389,328 |
| Total stockholders’ equity | US$ in thousands | 406,026 | 350,016 | 302,601 | 265,246 | 233,484 |
| Financial leverage ratio | 1.62 | 1.69 | 1.87 | 1.78 | 1.67 |
March 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $657,934K ÷ $406,026K
= 1.62
The financial leverage ratio of Hawkins Inc has shown fluctuations over the past five years. The ratio decreased from 1.87 in 2022 to 1.78 in 2021, indicating a reduction in the company's reliance on debt financing. However, it then increased to 1.69 in 2023 before further decreasing to 1.62 in 2024.
A financial leverage ratio of 1.62 in 2024 suggests that Hawkins Inc is financing its operations with a higher proportion of equity relative to debt. This can be seen as a positive sign as it indicates lower financial risk due to less dependency on borrowed funds.
Overall, the decreasing trend in the financial leverage ratio over the years may imply a more conservative capital structure and potentially better financial stability for Hawkins Inc. However, it is essential to continue monitoring this ratio in the future to assess the company's financial health and risk management strategies.
Peer comparison
Mar 31, 2024