Packaging Corp of America (PKG)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 2,472,200 | 2,473,600 | 2,471,500 | 2,479,400 | 2,476,800 |
| Total assets | US$ in thousands | 8,681,100 | 8,003,800 | 7,836,800 | 7,433,200 | 7,235,800 |
| Debt-to-assets ratio | 0.28 | 0.31 | 0.32 | 0.33 | 0.34 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,472,200K ÷ $8,681,100K
= 0.28
Packaging Corp Of America's debt-to-assets ratio has shown some fluctuation over the past five years. The ratio increased from 0.31 in 2019 to 0.34 in 2020 and remained at that level in 2021. However, there was a slight decrease to 0.32 in 2022, followed by another increase to 0.33 in 2023. Overall, the company has maintained a relatively conservative level of debt compared to its total assets, indicating a lower financial risk and a higher level of solvency. It suggests that Packaging Corp Of America has a strong ability to cover its debt obligations with its existing assets, which could be viewed positively by investors and creditors.
Peer comparison
Dec 31, 2023