Crown Holdings Inc (CCK)
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 | 15,034,000 | 14,321,000 | 14,569,000 | 14,412,000 | 14,301,000 | 14,224,000 | 14,399,000 | 14,430,000 | 13,858,000 | 16,006,000 | 16,695,000 | 16,180,000 | 16,691,000 | 15,629,000 | 15,265,000 | 15,533,000 | 12,718,000 | 15,337,000 | 15,565,000 | 15,357,000 |
| Total stockholders’ equity | US$ in thousands | 2,410,000 | 2,341,000 | 2,235,000 | 2,030,000 | 1,849,000 | 1,666,000 | 1,739,000 | 1,820,000 | 1,912,000 | 2,444,000 | 2,262,000 | 2,377,000 | 2,198,000 | 1,909,000 | 1,815,000 | 1,664,000 | 1,713,000 | 1,619,000 | 1,294,000 | 1,134,000 |
| Financial leverage ratio | 6.24 | 6.12 | 6.52 | 7.10 | 7.73 | 8.54 | 8.28 | 7.93 | 7.25 | 6.55 | 7.38 | 6.81 | 7.59 | 8.19 | 8.41 | 9.33 | 7.42 | 9.47 | 12.03 | 13.54 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $15,034,000K ÷ $2,410,000K
= 6.24
The financial leverage ratio of Crown Holdings, Inc. has been fluctuating over the past eight quarters. The ratio measures the extent to which the company relies on debt to fund its operations and growth. A higher ratio indicates a higher level of debt compared to equity.
In Q4 2023, the financial leverage ratio stood at 6.24, slightly higher than the previous quarter's ratio of 6.12. This suggests that the company's reliance on debt increased marginally during this period.
Looking back over the past year, the trend shows a general increase in the financial leverage ratio. The ratio has climbed from 7.73 in Q4 2022 to 6.24 in Q4 2023, indicating a significant reduction in the company's debt levels in the past four quarters.
It's worth noting that a high financial leverage ratio can indicate increased financial risk for the company, as higher debt levels can lead to higher interest payments and potentially limit financial flexibility. On the other hand, a lower ratio implies a stronger equity position and lower financial risk.
Overall, Crown Holdings, Inc. should carefully monitor its financial leverage ratio to ensure a balanced capital structure that supports sustainable growth while managing financial risk effectively.
Peer comparison
Dec 31, 2023