What is H&M long term debt? (2024)

What is H&M long term debt?

Hennes & Mauritz AB long term debt for 2022 was $5.91B, a 448.51% increase from 2021.

Is H&M in debt?

Total debt on the balance sheet as of August 2023 : $6.87 B

According to H&M's latest financial reports the company's total debt is $6.87 B.

What does long-term debt tell you about a company?

Analysts use long-term debt ratios to determine how much of a company's assets were financed by debt and how much financial leverage it has. The long-term debt ratio gives stock market investors and lenders insight into how likely a company is to meet its debt obligations.

How much money does H&M make a year?

Hennes & Mauritz AB annual revenue for 2022 was $22.422B, a 4.01% decline from 2021. Hennes & Mauritz AB annual revenue for 2021 was $23.359B, a 15.86% increase from 2020.

How do you value long-term debt?

The formula to calculate the long-term debt ratio is as follows. The sum of all financial obligations with maturities exceeding twelve months, including the current portion of LTD, is divided by a company's total assets.

Why is H&M struggling?

H&M Sales Drop as Consumer Demand for Fast Fashion Wavers

Hennes & Mauritz AB's revenue fell as consumers pulled back on spending at H&M clothing stores and after the chain closed stores in Russia.

How is H&M doing financially?

H&M posted a quarterly operating profit of 2.08 billion crowns ($196 million), up from 725 million a year ago, and above the 1.43 billion expected by analysts in an LSEG poll.

What does long-term debt mean?

Long-term debt is debt that matures in more than one year and is often treated differently from short-term debt. For an issuer, long-term debt is a liability that must be repaid while owners of debt (e.g., bonds) account for them as assets.

What is long-term debt and examples?

Long-term liabilities or debt are those obligations on a company's books that are not due without the next 12 months. Loans for machinery, equipment, or land are examples of long-term liabilities, whereas rent, for example, is a short-term liability that must be paid within the year.

Why do companies use long-term debt?

Firms tend to match the maturity of their assets and liabilities, and thus they often use long-term debt to make long-term investments, such as purchases of fixed assets or equipment. Long-term finance also offers protection from credit supply shocks and having to refinance in bad times.

Is H&M financially stable?

"The H&M group is in a strong position, with a positive profitability trend and good conditions to make further improvements in 2024," group chair Karl-Johan Persson said.

Who is H&M owned by?

Ownership The founder of H&M Erling Persson passed most of the company down to his children. His son Stefan Persson and family own 50.5% of the total shares and 76% of the voting shares. Meanwhile, his daughter Lottie Tham and family hold 5.4% of the total shares and 2.6% of the voting shares.

What does H&M stand for?

The H&M is the abbreviation for Hennes and Mauritz. In Swedish, Hennes means “hers.” The store was designed keeping women in mind. Later on, they started selling men's fashion clothing as well. Hennes acquired Mauritz — the huntsman apparel store, hence the name H&M. What font is the H&M logo?

What is a good long-term debt?

What is a good long-term debt ratio? A long-term debt ratio of 0.5 or less is considered a good definition to indicate the safety and security of a business.

What are the risks of long-term debt?

There are many types of risks associated with long term debt financing. The most common are interest rate risk, credit risk, and liquidity risk. interest rate Risk: interest rate risk is the risk that interest rates will rise, causing the value of your investment to fall.

What is an example of long-term debt Why?

Types of Long Term Debt

Mortgages – These are loans that are backed by a specific piece of real estate, such as land and buildings. Bonds – These are publicly tradable securities issued by a corporation with a maturity of longer than a year.

Why is H&M losing money?

H&M has been vulnerable to competition from the likes of Inditex and upstart Shein. Hennes & Mauritz AB's revenue fell as consumers pulled back on spending at H&M clothing stores and after the chain closed stores in Russia.

Is H&M still unethical?

While H&M made some improvements on its labour policies in recent years, it has fallen from “It's a Start” to “Not Good Enough” in our most recent review because the company consistently finds itself embroiled in labour scandals.

Are H and M losing money?

Under Helmersson's tenure, H&M lost a fifth of its market value as it grappled with the pandemic, stubbornly high inventory levels that only recently began to moderate and competition from perennial rival Zara and upstarts like Shein.

What is H&M debt to equity?

H & M Hennes & Mauritz has a total shareholder equity of SEK46. 7B and total debt of SEK14. 2B, which brings its debt-to-equity ratio to 30.5%.

Who is the richest man in the H&M?

Swedish fashion magnate Stefan Persson, the billionaire son of H&M's founder, owns a sprawling 7,700-hectare (19,000-acre) country estate in southern England. As well as letting out properties, farming wheat and barley, and rearing cattle, the estate has its own pub, brewery, distillery and oil press.

What made H&M successful?

Adaptable and Fast Fashion Model: One of the cornerstones of H&M's success is its ability to swiftly adapt to the ever-evolving fashion market. Their fast-fashion model allows them to transform runway designs into affordable pieces available on the shelves in a matter of weeks.

Is long-term debt good or bad?

A major drawback of long-term debt is that it restricts your monthly cash flow in the near term. The higher your debt balances, the more you commit to paying on them each month. This means you have to use more of your monthly earnings to repay debt than to make new investments to grow.

Is long-term debt bad for a company?

Classification of long-term debt as current will have a major impact on the appearance of the balance sheet of an entity and it will worsen the financial ratios. This may cause the company to experience solvability issues, difficulties in finding new investors and problems when negotiating with suppliers.

Is low long-term debt good?

From a pure risk perspective, debt ratios of 0.4 or lower are considered better, while a debt ratio of 0.6 or higher makes it more difficult to borrow money. While a low debt ratio suggests greater creditworthiness, there is also risk associated with a company carrying too little debt.