Bunge Limited (BG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 24,899,000 | 25,372,000 | 24,580,000 | 23,819,000 | 23,655,000 |
| Total stockholders’ equity | US$ in thousands | 9,913,000 | 10,851,000 | 9,224,000 | 7,669,000 | 6,069,000 |
| Financial leverage ratio | 2.51 | 2.34 | 2.66 | 3.11 | 3.90 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $24,899,000K ÷ $9,913,000K
= 2.51
The financial leverage ratio of Bunge Limited has exhibited a declining trend over the years, indicating an improvement in the company's financial stability and ability to meet its debt obligations.
The ratio decreased from 3.90 as of December 31, 2020, to 2.51 as of December 31, 2024. This suggests that Bunge Limited has been reducing its reliance on debt financing in relation to its equity, which can be viewed positively by investors and creditors.
A lower financial leverage ratio signifies a lower level of financial risk and a stronger financial position for the company, as it indicates a smaller proportion of debt in the capital structure relative to equity. This can enhance the company's ability to weather economic downturns or unexpected challenges.
Overall, the declining trend in Bunge Limited's financial leverage ratio demonstrates a prudent approach to managing its capital structure and debt levels, potentially enhancing its overall financial health and stability.
Peer comparison
Dec 31, 2024