Packaging Corp of America (PKG)

Debt-to-capital 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
Long-term debt US$ in thousands 2,472,200 2,075,700 2,474,700 2,474,100 2,473,600 2,473,100 2,472,600 2,472,000 2,471,500 2,471,100 2,479,800 2,480,000 2,479,400 2,478,700 2,478,000 2,477,400 2,476,800 2,486,300 2,485,400 2,484,600
Total stockholders’ equity US$ in thousands 3,997,300 3,887,200 3,848,600 3,757,700 3,667,100 3,971,200 3,964,500 3,779,300 3,607,200 3,608,300 3,444,300 3,331,200 3,246,300 3,205,400 3,133,100 3,149,900 3,071,000 3,034,700 2,921,200 2,794,600
Debt-to-capital ratio 0.38 0.35 0.39 0.40 0.40 0.38 0.38 0.40 0.41 0.41 0.42 0.43 0.43 0.44 0.44 0.44 0.45 0.45 0.46 0.47

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,472,200K ÷ ($2,472,200K + $3,997,300K)
= 0.38

Packaging Corp Of America's debt-to-capital ratio has been relatively stable over the past eight quarters, ranging between 0.39 and 0.42. This indicates that the company relies significantly on debt to fund its operations and investments compared to its own capital. The consistency in the ratio suggests that the company's capital structure has remained consistent, with the proportion of debt to total capital remaining fairly constant. While a higher debt-to-capital ratio can indicate higher financial risk due to increased leverage, it can also suggest that the company is effectively utilizing debt financing to support growth opportunities. It is important for investors and stakeholders to monitor this ratio over time to assess the company's financial health and risk profile.


Peer comparison

Dec 31, 2023

Company name
Symbol
Debt-to-capital ratio
Packaging Corp of America
PKG
0.38
Graphic Packaging Holding Company
GPK
0.62
Smurfit WestRock plc
SW
0.00
Sonoco Products Company
SON
0.56