Greif Bros Corporation (GEF)
Financial leverage ratio
| Oct 31, 2024 | Oct 31, 2023 | Oct 31, 2022 | Oct 31, 2021 | Oct 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,646,400 | 5,960,800 | 5,460,300 | 5,815,800 | 5,510,900 |
| Total stockholders’ equity | US$ in thousands | 2,082,400 | 1,947,900 | 1,761,300 | 1,514,300 | 1,152,200 |
| Financial leverage ratio | 3.19 | 3.06 | 3.10 | 3.84 | 4.78 |
October 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,646,400K ÷ $2,082,400K
= 3.19
The financial leverage ratio of Greif Bros Corporation has shown a gradual decline over the years, reflecting a decreasing reliance on debt financing compared to equity. From 4.78 in October 31, 2020, the ratio has steadily decreased to 3.19 by October 31, 2024. This trend suggests the company has been effectively managing its leverage, potentially reducing financial risk and improving overall financial stability. A decreasing financial leverage ratio indicates that Greif Bros Corporation has been successful in balancing its capital structure and maintaining a healthier financial position.