Berry Global Group Inc (BERY)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 16,144,000 | 16,587,000 | 16,549,000 | 16,613,000 | 16,451,000 | 16,956,000 | 16,885,000 | 17,535,000 | 17,341,000 | 17,882,000 | 17,577,000 | 17,263,000 | 17,176,000 | 16,701,000 | 16,731,000 | 16,949,000 | 17,024,000 | 16,469,000 | 8,809,000 | 8,984,000 |
| Total stockholders’ equity | US$ in thousands | 3,328,000 | 3,216,000 | 3,387,000 | 3,295,000 | 3,259,000 | 3,196,000 | 3,109,000 | 3,320,000 | 3,294,000 | 3,180,000 | 2,953,000 | 2,646,000 | 2,445,000 | 2,092,000 | 1,869,000 | 1,651,000 | 1,786,000 | 1,618,000 | 1,546,000 | 1,531,000 |
| Financial leverage ratio | 4.85 | 5.16 | 4.89 | 5.04 | 5.05 | 5.31 | 5.43 | 5.28 | 5.26 | 5.62 | 5.95 | 6.52 | 7.02 | 7.98 | 8.95 | 10.27 | 9.53 | 10.18 | 5.70 | 5.87 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $16,144,000K ÷ $3,328,000K
= 4.85
The financial leverage ratio of Berry Global Group Inc has exhibited fluctuations over the past few years, ranging from a low of 4.85 to a high of 10.27. The ratio measures the extent to which the company relies on debt to finance its operations and investments. A higher financial leverage ratio indicates a higher level of debt relative to equity in the company's capital structure.
From the data, it is evident that the financial leverage ratio has been on an upward trend since 2020, reaching a peak of 10.27 in March 2020 before gradually declining. This upward trend suggests that the company has been increasing its reliance on debt financing over the past few years.
A high financial leverage ratio can be an indicator of increased financial risk for the company, as higher levels of debt can lead to higher interest payments and potential financial distress. It is important for investors and stakeholders to closely monitor the company's financial leverage ratio to assess its overall financial health and risk profile.
Overall, the trend in Berry Global Group Inc's financial leverage ratio indicates an increasing reliance on debt financing, which may pose risks but also potentially offer opportunities for growth if managed effectively.
Peer comparison
Dec 31, 2023