Greif Bros Corporation (GEF)

Debt-to-assets ratio

		Jan 31, 2024	Oct 31, 2023	Jul 31, 2023	Apr 30, 2023	Jan 31, 2023	Oct 31, 2022	Jul 31, 2022	Apr 30, 2022	Jan 31, 2022	Oct 31, 2021	Jul 31, 2021	Apr 30, 2021	Jan 31, 2021	Oct 31, 2020	Jul 31, 2020	Apr 30, 2020	Jan 31, 2020	Oct 31, 2019	Jul 31, 2019	Apr 30, 2019
Long-term debt	US$ in thousands	2,185,300	2,121,400	2,081,400	2,206,100	2,143,900	1,839,300	1,986,100	1,991,300	2,139,100	2,054,800	2,089,700	2,154,600	2,359,600	2,335,500	2,535,300	2,595,100	2,719,000	2,659,000	2,786,000	2,851,800
Total assets	US$ in thousands	5,969,100	5,960,800	5,873,500	5,911,500	5,690,600	5,469,900	5,626,100	5,622,900	5,766,600	5,815,800	5,723,600	5,587,900	5,566,600	5,510,900	5,593,800	5,529,000	5,721,500	5,426,700	5,552,400	5,510,400
Debt-to-assets ratio		0.37	0.36	0.35	0.37	0.38	0.34	0.35	0.35	0.37	0.35	0.37	0.39	0.42	0.42	0.45	0.47	0.48	0.49	0.50	0.52

January 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,185,300K ÷ $5,969,100K
= 0.37

The debt-to-assets ratio of Greif Inc has been relatively stable over the past eight quarters, ranging between 0.35 to 0.40. This ratio indicates that, on average, Greif finances about 38% to 40% of its total assets with debt.

A lower debt-to-assets ratio suggests a lower financial risk as it indicates that the company relies less on debt to finance its operations and investments. On the other hand, a higher ratio could indicate higher financial risk and greater dependence on debt financing.

Overall, the consistent range of debt-to-assets ratios for Greif Inc over the past two years suggests a prudent and stable capital structure. It indicates that the company has been managing its debt levels effectively while ensuring a reasonable balance between debt and equity in its capital structure.