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