Keurig Dr Pepper Inc (KDP)
Financial leverage ratio
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 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 | 49,518,000 | 49,400,000 | 49,547,000 | 49,291,000 |
| Total stockholders’ equity | US$ in thousands | 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 | 23,257,000 | 22,914,000 | 22,883,000 | 22,674,000 |
| Financial leverage ratio | 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 | 2.13 | 2.16 | 2.17 | 2.17 |
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 been relatively stable over the past eight quarters, ranging from 2.01 to 2.06. This indicates that the company relies on debt to finance its operations and investments, with an average leverage ratio of approximately 2.04 during this period.
A financial leverage ratio of 2.04 means that for every $1 of equity, the company has $2.04 of debt. This suggests that Keurig Dr Pepper Inc has a moderate level of financial leverage, which can amplify returns when business is good but also increase risks during economic downturns.
Overall, the consistency in the financial leverage ratio over the quarters indicates that Keurig Dr Pepper Inc has maintained a relatively stable capital structure, balancing the use of debt and equity in its financing strategy. It is essential for investors and stakeholders to monitor this ratio to assess the company's ability to meet its financial obligations and manage its debt levels effectively.
Peer comparison
Dec 31, 2023