Ball Corporation (BALL)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,303,000 | 19,909,000 | 19,714,000 | 18,252,000 | 17,360,000 |
| Total stockholders’ equity | US$ in thousands | 3,769,000 | 3,461,000 | 3,627,000 | 3,275,000 | 2,949,000 |
| Financial leverage ratio | 5.12 | 5.75 | 5.44 | 5.57 | 5.89 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,303,000K ÷ $3,769,000K
= 5.12
The financial leverage ratio of Ball Corp. has shown variations over the past five years. The ratio was at its lowest in 2021 at 5.44, indicating that the company relied less on debt financing to support its operations during that period. However, in 2022, the financial leverage ratio increased to 5.75, suggesting a higher level of debt relative to equity in the company's capital structure.
In 2023, the financial leverage ratio decreased to 5.12, showing a reduction in the company's reliance on debt financing compared to the prior year. Despite the fluctuations, the financial leverage ratio has generally remained above 5 over the past five years, indicating that Ball Corp. has maintained a higher level of financial risk by having a relatively high proportion of debt in its capital structure compared to equity.
Overall, the trend in the financial leverage ratio suggests that Ball Corp. has been managing its capital structure to balance the benefits of debt financing with the risks associated with higher leverage. It is essential for the company to carefully monitor and optimize its debt levels to ensure sustainable financial health and stability in the long term.
Peer comparison
Dec 31, 2023