Keurig Dr Pepper Inc (KDP)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Total assets	US$ in thousands	53,430,000	52,718,000	52,344,000	52,286,000	52,130,000	51,763,000	51,801,000	51,660,000	51,837,000	51,440,000	51,428,000	51,244,000	50,598,000	50,330,000	50,344,000	50,403,000	49,779,000	49,381,000	49,026,000	48,843,000
Total stockholders’ equity	US$ in thousands	24,243,000	24,969,000	24,718,000	24,653,000	25,676,000	25,364,000	25,268,000	25,103,000	25,126,000	25,102,000	25,391,000	25,511,000	24,972,000	24,405,000	24,242,000	24,070,000	23,829,000	23,296,000	22,923,000	22,640,000
Financial leverage ratio		2.20	2.11	2.12	2.12	2.03	2.04	2.05	2.06	2.06	2.05	2.03	2.01	2.03	2.06	2.08	2.09	2.09	2.12	2.14	2.16

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $53,430,000K ÷ $24,243,000K
= 2.20

The financial leverage ratio of Keurig Dr Pepper Inc has shown a slightly declining trend over the period from March 31, 2020, to December 31, 2024. The ratio started at 2.16 on March 31, 2020, decreased to 2.03 on December 31, 2021, and then increased to 2.20 on December 31, 2024. This indicates that the company's reliance on debt to finance its operations and growth has fluctuated over the period, with a notable increase at the end of the period.

A financial leverage ratio of 2.20 as of December 31, 2024, implies that for every dollar of equity, Keurig Dr Pepper Inc has $2.20 of debt. This level of leverage suggests that the company has a moderate level of financial risk, as higher leverage can amplify both profits and losses. Investors and creditors may monitor this ratio to assess the company's ability to meet its debt obligations and the potential impact of changes in interest rates on its financial performance.