Berry Global Group Inc (BERY)
Financial leverage ratio
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,613,000 | 16,587,000 | 16,956,000 | 17,882,000 | 16,701,000 |
| Total stockholders’ equity | US$ in thousands | 3,608,000 | 3,216,000 | 3,196,000 | 3,180,000 | 2,092,000 |
| Financial leverage ratio | 4.60 | 5.16 | 5.31 | 5.62 | 7.98 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,613,000K ÷ $3,608,000K
= 4.60
The financial leverage ratio of Berry Global Group Inc has shown a decreasing trend over the past five years. The ratio has decreased from 7.98 in 2020 to 4.60 in 2024. A decreasing trend in the financial leverage ratio indicates that the company is relying less on debt to finance its operations and investments compared to previous years. This could be a positive sign as lower leverage reduces the company's financial risk and vulnerability to economic downturns. However, it's important to note that a very low leverage ratio could also indicate underutilization of debt, which could limit the company's ability to take advantage of growth opportunities. Overall, the decreasing trend in Berry Global Group Inc's financial leverage ratio suggests a more conservative approach to capital structure and potentially improved financial stability.
Peer comparison
Sep 30, 2024