Greif Bros Corporation (GEF)
Financial leverage ratio
| Jan 31, 2025 | Oct 31, 2024 | Jul 31, 2024 | Apr 30, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 6,585,700 | 6,646,400 | 6,834,900 | 6,828,800 | 5,969,100 | 5,960,800 | 5,873,500 | 5,911,500 | 5,690,600 | 5,460,300 | 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 |
| Total stockholders’ equity | US$ in thousands | 2,040,400 | 2,075,700 | 2,056,900 | 2,009,100 | 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 |
| Financial leverage ratio | 3.23 | 3.20 | 3.32 | 3.40 | 3.00 | 3.06 | 3.01 | 3.14 | 3.08 | 3.10 | 3.31 | 3.33 | 3.86 | 3.84 | 3.95 | 4.07 | 4.62 | 4.78 | 4.90 | 5.10 |
January 31, 2025 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $6,585,700K ÷ $2,040,400K
= 3.23
The financial leverage ratio of Greif Bros Corporation has shown a declining trend over the past few years, indicating an improvement in the company's leverage position. The ratio decreased from 5.10 as of April 30, 2020, to 3.23 as of January 31, 2025.
A decreasing trend in the financial leverage ratio suggests that the company is relying less on debt financing and is gradually reducing its debt levels relative to its equity. This can be considered a positive sign as lower leverage usually signifies a lower financial risk and greater financial stability.
Greif Bros Corporation's decreasing financial leverage ratio could be attributed to various factors such as improved profitability, efficient cost management, or successful debt reduction strategies. Investors and stakeholders may view this trend favorably as it indicates a healthier balance sheet and a more sustainable financial structure for the company.