HRI's net income collapsed 99.5% to just $1M while total debt nearly doubled to $8B, indicating severe financial distress despite business expansion.
The dramatic earnings collapse combined with massive debt increases suggests HRI either made a major acquisition that isn't generating expected returns or is experiencing operational difficulties that are being masked by debt-financed growth. The 41% jump in interest expense is consuming nearly all profits, creating a dangerous leverage situation that threatens the company's financial stability.
HRI's financials show a company in severe distress despite apparent growth, with total assets expanding 75% to $13.8B and receivables up 31%, but net income plummeting 99.5% to just $1M as debt nearly doubled to $8B. Interest expenses surged 41% to $122M, consuming virtually all profits, while cash declined 37% and current liabilities increased 30%. This profile suggests either a poorly performing major acquisition or fundamental operational problems being masked by unsustainable debt-financed expansion.
Net income declined 99.5% — review whether driven by operations, interest costs, or non-recurring items.
Debt increased 97.1% — substantial leverage increase; assess whether deployed for growth or covering losses.
Liabilities grew 82.5% — significant increase in debt or obligations, assess impact on financial flexibility.
Asset base grew 74.9% — expansion through organic growth, acquisitions, or capital deployment.
Interest expense surged 41.4% — significant debt increase or rising rates materially impacting earnings.
Equity base grew 39.5% — retained earnings accumulation or equity issuance strengthening the balance sheet.
Cash declined 37.3% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.
Receivables surged 30.6% — revenue recognized but not yet collected; watch for collection issues or channel stuffing.
Current liabilities rose 29.9% — increased short-term obligations, watch current ratio.
Inventory reduced 24.5% — lean inventory management or demand outpacing supply.
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