Keurig Dr Pepper Inc (KDP)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	52,130,000	51,837,000	50,598,000	49,779,000	49,518,000
Total stockholders’ equity	US$ in thousands	25,676,000	25,126,000	24,972,000	23,829,000	23,257,000
Financial leverage ratio		2.03	2.06	2.03	2.09	2.13

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $52,130,000K ÷ $25,676,000K
= 2.03

The financial leverage ratio of Keurig Dr Pepper Inc has shown a relatively stable trend over the past five years, fluctuating between 2.03 to 2.13. This ratio indicates that the company finances its operations with a higher proportion of debt compared to equity, with an average leverage ratio of approximately 2.07 during this period.

The slight fluctuations in the financial leverage ratio suggest that the company's capital structure has remained relatively consistent, with only modest changes in the levels of debt and equity financing. A financial leverage ratio above 1 indicates that the company relies more on debt to fund its operations, which can potentially magnify returns but also increase financial risk.

Overall, Keurig Dr Pepper Inc's financial leverage ratio suggests a stable but relatively high level of debt utilization in its capital structure. It is important for the company to carefully manage its debt levels to ensure it remains sustainable and can support future growth and profitability.