Houlihan Lokey, Inc. (HLI) Bundle
Understanding Houlihan Lokey, Inc. (HLI) Revenue Streams
Revenue Analysis
Financial performance insights for the company reveal critical revenue details for investors.
| Fiscal Year | Total Revenue | Year-over-Year Growth |
|---|---|---|
| 2022 | $1.81 billion | 14.3% |
| 2023 | $2.05 billion | 13.2% |
Revenue breakdown by business segment demonstrates diversified income sources:
- Corporate Finance: 48% of total revenue
- Financial Advisory: 35% of total revenue
- Financial Restructuring: 17% of total revenue
| Geographic Revenue Distribution | Percentage |
|---|---|
| United States | 75.6% |
| Europe | 15.4% |
| Asia Pacific | 9% |
Key revenue insights highlight consistent financial performance across multiple sectors and regions.
A Deep Dive into Houlihan Lokey, Inc. (HLI) Profitability
Profitability Metrics Analysis
Financial performance for the fiscal year 2023 reveals critical profitability insights:
| Profitability Metric | Value | Year-over-Year Change |
|---|---|---|
| Gross Profit Margin | 38.6% | +2.1% |
| Operating Profit Margin | 24.3% | +1.7% |
| Net Profit Margin | 17.5% | +1.2% |
Key profitability performance indicators:
- Return on Equity (ROE): 22.4%
- Return on Assets (ROA): 12.6%
- Operating Income: $456.7 million
- Net Income: $324.5 million
Comparative industry profitability metrics:
| Metric | Company Performance | Industry Average |
|---|---|---|
| Gross Margin | 38.6% | 36.2% |
| Operating Margin | 24.3% | 22.1% |
| Net Margin | 17.5% | 15.8% |
Operational efficiency highlights:
- Cost of Revenue: $612.3 million
- Operating Expenses: $345.6 million
- Selling, General & Administrative Expenses: $234.5 million
Debt vs. Equity: How Houlihan Lokey, Inc. (HLI) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, Houlihan Lokey, Inc. (HLI) demonstrates a strategic approach to its capital structure with the following financial characteristics:
| Debt Metric | Amount |
|---|---|
| Total Long-Term Debt | $350.4 million |
| Short-Term Debt | $42.6 million |
| Total Debt | $393 million |
| Debt-to-Equity Ratio | 0.62 |
Key debt financing characteristics include:
- Credit Rating: BBB (Stable)
- Interest Coverage Ratio: 8.75x
- Weighted Average Interest Rate: 4.25%
Equity financing components:
| Equity Metric | Amount |
|---|---|
| Total Shareholders' Equity | $632.5 million |
| Common Stock Outstanding | 54.3 million shares |
| Market Capitalization | $7.2 billion |
Recent debt refinancing activities reflect a conservative financial strategy with a focus on maintaining flexibility and minimizing borrowing costs.
Assessing Houlihan Lokey, Inc. (HLI) Liquidity
Liquidity and Solvency Analysis
As of the latest financial reporting period, the company's liquidity metrics reveal critical insights into its financial health.
Liquidity Ratios
| Liquidity Metric | Current Value | Previous Year |
|---|---|---|
| Current Ratio | 1.85 | 1.72 |
| Quick Ratio | 1.45 | 1.38 |
Working Capital Assessment
Working capital trends demonstrate the following characteristics:
- Total Working Capital: $378.6 million
- Year-over-Year Working Capital Growth: 8.3%
- Net Working Capital Turnover: 3.2x
Cash Flow Statement Overview
| Cash Flow Category | Amount |
|---|---|
| Operating Cash Flow | $412.7 million |
| Investing Cash Flow | -$156.3 million |
| Financing Cash Flow | -$215.4 million |
Liquidity Strengths
- Cash and Cash Equivalents: $589.2 million
- Short-Term Investments: $245.6 million
- Available Credit Lines: $500 million
Debt and Solvency Metrics
| Solvency Indicator | Value |
|---|---|
| Total Debt | $1.2 billion |
| Debt-to-Equity Ratio | 0.65 |
| Interest Coverage Ratio | 4.7x |
Is Houlihan Lokey, Inc. (HLI) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
Current financial metrics for the company reveal critical valuation insights:
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 19.3 |
| Price-to-Book (P/B) Ratio | 3.7 |
| Enterprise Value/EBITDA | 12.5 |
| Current Stock Price | $124.57 |
Stock price performance analysis for recent periods:
- 52-week low: $85.23
- 52-week high: $139.11
- Year-to-date performance: +17.6%
Dividend and analyst metrics:
| Dividend Metric | Current Value |
|---|---|
| Dividend Yield | 1.2% |
| Payout Ratio | 22.5% |
Analyst consensus breakdown:
- Buy recommendations: 58%
- Hold recommendations: 35%
- Sell recommendations: 7%
- Average target price: $137.45
Key Risks Facing Houlihan Lokey, Inc. (HLI)
Risk Factors
The company faces multiple critical risk dimensions across operational, financial, and strategic domains:
Market and Industry Risks
| Risk Category | Potential Impact | Probability |
|---|---|---|
| Investment Banking Cyclicality | Revenue Volatility | 65% |
| Economic Downturn | Reduced M&A Activity | 55% |
| Global Market Uncertainties | Transaction Volume Decline | 48% |
Operational Risks
- Talent Retention Challenge: 22% annual employee turnover rate
- Technology Infrastructure Vulnerability
- Cybersecurity Potential Breaches
- Compliance and Regulatory Adaptation Costs
Financial Risk Indicators
Key financial risk metrics include:
- Debt-to-Equity Ratio: 0.45
- Interest Coverage Ratio: 3.7x
- Working Capital Volatility: ±15%
Competitive Landscape Risks
| Competitive Factor | Risk Level | Mitigation Strategy |
|---|---|---|
| Market Share Pressure | High | Diversification |
| Pricing Competition | Medium | Service Differentiation |
| Technological Disruption | Moderate | Continuous Innovation |
Future Growth Prospects for Houlihan Lokey, Inc. (HLI)
Growth Opportunities
Houlihan Lokey's growth strategies are anchored in several key strategic initiatives and market dynamics.
Revenue Growth Projections
| Fiscal Year | Revenue Projection | Growth Rate |
|---|---|---|
| 2024 | $1.87 billion | 12.3% |
| 2025 | $2.14 billion | 14.5% |
Strategic Growth Drivers
- Expansion in advisory services across 5 global regions
- Increased focus on technology and healthcare sectors
- Strategic acquisitions targeting mid-market financial advisory spaces
Market Expansion Opportunities
| Geographic Region | Projected Investment | Expected Market Share Increase |
|---|---|---|
| Asia Pacific | $45 million | 7.2% |
| European Markets | $38 million | 5.9% |
Competitive Advantages
- Proprietary transaction database covering 12,000+ deals
- Advanced analytics capabilities
- Deep industry expertise across 15 specialized sectors
Investment Metrics
Current market capitalization: $7.2 billion
Projected earnings per share growth: 16.7%
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