Greif Bros Corporation (GEF)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total stockholders’ equity | US$ in thousands | 1,992,500 | 1,947,900 | 1,948,300 | 1,879,800 | 1,845,400 | 1,761,300 | 1,701,100 | 1,686,400 | 1,493,300 | 1,514,300 | 1,448,900 | 1,374,200 | 1,205,300 | 1,152,200 | 1,141,300 | 1,083,200 | 1,163,800 | 1,133,100 | 1,120,600 | 1,086,600 |
| Financial leverage ratio | 3.00 | 3.06 | 3.01 | 3.14 | 3.08 | 3.11 | 3.31 | 3.33 | 3.86 | 3.84 | 3.95 | 4.07 | 4.62 | 4.78 | 4.90 | 5.10 | 4.92 | 4.79 | 4.95 | 5.07 |
January 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,969,100K ÷ $1,992,500K
= 3.00
The financial leverage ratio of Greif Inc has shown some fluctuations over the past eight quarters. The ratio peaked at 3.33 in Q2 2022 and has since decreased to 3.00 in Q1 2024. This indicates that the company's level of financial leverage, or the extent to which it relies on debt financing, has decreased over this period.
A financial leverage ratio of 3.00 means that for every dollar of equity, Greif Inc has $3.00 of debt. A lower financial leverage ratio suggests that the company is relying less on debt to fund its operations and investments, which may indicate a more conservative financial strategy.
Overall, the trend of decreasing financial leverage ratios over the past quarters may imply that Greif Inc is reducing its reliance on debt financing and potentially strengthening its financial position by lowering its leverage levels. However, it is essential to consider other financial metrics and factors to gain a comprehensive understanding of the company's overall financial health and performance.