Greif Bros Corporation (GEF)
Solvency ratios
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.19 | 3.06 | 3.10 | 3.84 | 4.78 |
Based on the provided data for Greif Bros Corporation's solvency ratios, we can see that the company has maintained a strong financial position over the years.
1. Debt-to-assets ratio: The company's debt-to-assets ratio has remained at 0.00% consistently from October 31, 2020, to October 31, 2024. This indicates that the company has not used debt financing to fund its assets during this period.
2. Debt-to-capital ratio: Similar to the debt-to-assets ratio, the debt-to-capital ratio has also been consistently 0.00% across the five-year period. This implies that Greif Bros Corporation has not relied on debt in relation to its capital structure.
3. Debt-to-equity ratio: The debt-to-equity ratio has remained stable at 0.00% from October 31, 2020, to October 31, 2024. This suggests that the company's financial structure has not been burdened by debt relative to its equity.
4. Financial leverage ratio: The financial leverage ratio has decreased steadily from 4.78 on October 31, 2020, to 3.19 on October 31, 2024. This indicates that the company has been reducing its reliance on debt to finance its operations over the years, which is a positive sign for its solvency and financial stability.
Overall, Greif Bros Corporation's solvency ratios show a healthy financial position with low leverage and minimal debt burden, indicating a strong ability to meet its financial obligations and maintain stability in the long term.
Coverage ratios
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.37 | 6.17 | 9.59 | 6.16 | 2.61 |
Based on the provided data, the interest coverage ratio for Greif Bros Corporation has demonstrated fluctuations over the past five years.
In October 31, 2020, the interest coverage ratio stood at 2.61, indicating that the company's operating income was able to cover its interest expenses 2.61 times. This suggests a relatively lower capacity to meet interest obligations from earnings at that time.
By October 31, 2021, the interest coverage ratio improved significantly to 6.16, reflecting a stronger ability to cover interest payments with operating income. This increase may signify improved profitability or better cost management within the company.
The trend continued to show improvement as of October 31, 2022, with an interest coverage ratio of 9.59, indicating a robust ability to service interest payments from operating earnings. This significant rise suggests a healthier financial position and reduced financial risk.
However, in October 31, 2023, the interest coverage ratio decreased to 6.17, albeit remaining relatively strong. This could signal a slight decrease in operating income relative to interest expenses compared to the previous year.
Lastly, by October 31, 2024, the interest coverage ratio further decreased to 3.37, indicating a drop in the company's ability to cover interest payments from operating income. This could potentially point to increased financial stress or operational challenges faced by Greif Bros Corporation during that period.
In conclusion, the fluctuation in Greif Bros Corporation's interest coverage ratio over the five-year period suggests varying levels of financial health and risk. It is essential for the company to continue monitoring and managing its interest coverage ratio to ensure sustainable operational and financial stability.