Berry Global Group Inc (BERY)
Financial leverage ratio
| Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | Sep 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,587,000 | 16,956,000 | 17,882,000 | 16,701,000 | 16,469,000 |
| Total stockholders’ equity | US$ in thousands | 3,216,000 | 3,196,000 | 3,180,000 | 2,092,000 | 1,618,000 |
| Financial leverage ratio | 5.16 | 5.31 | 5.62 | 7.98 | 10.18 |
September 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,587,000K ÷ $3,216,000K
= 5.16
The financial leverage ratio for Berry Global Group Inc has shown a downward trend over the years, decreasing from 10.18 in 2019 to 5.16 in 2023. This indicates that the company has been reducing its reliance on debt to finance its operations and investments. A lower ratio signifies a lesser degree of financial risk and may also indicate improved solvency. It suggests that the company's assets are increasingly financed by equity rather than debt, which can enhance the company's financial stability and ability to weather economic downturns. Overall, the declining trend in the financial leverage ratio reflects potential improvement in the company's capital structure and risk management.
Peer comparison
Sep 30, 2023