Packaging Corp of America (PKG)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 3,997,300 | 3,667,100 | 3,607,200 | 3,246,300 | 3,071,000 |
| Debt-to-equity ratio | 0.62 | 0.67 | 0.69 | 0.76 | 0.81 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,472,200K ÷ $3,997,300K
= 0.62
Packaging Corp Of America's debt-to-equity ratio has ranged from 0.68 to 0.81 over the past five years. The ratio indicates that the company has been relying more on debt financing compared to equity to fund its operations and growth. A decreasing trend from 0.81 in 2019 to 0.72 in 2023 suggests a potential improvement in the company's financial leverage and a decrease in its financial risk. However, it is important to note that a debt-to-equity ratio of 0.72 still indicates that a significant portion of the company's assets are funded by debt. Further analysis of the company's overall financial health and cash flow management is advisable to assess the sustainability of this debt level.
Peer comparison
Dec 31, 2023