Packaging Corp of America (PKG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 8,833,200 | 8,681,100 | 8,003,800 | 7,836,800 | 7,433,200 |
| Total stockholders’ equity | US$ in thousands | 4,404,000 | 3,997,300 | 3,667,100 | 3,607,200 | 3,246,300 |
| Financial leverage ratio | 2.01 | 2.17 | 2.18 | 2.17 | 2.29 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,833,200K ÷ $4,404,000K
= 2.01
The financial leverage ratio of Packaging Corp of America has shown a slight decrease from 2.29 in December 2020 to 2.01 in December 2024. This ratio indicates that the company relies more on debt financing in its capital structure compared to equity. A lower financial leverage ratio suggests a lower level of financial risk and greater financial stability, which can be considered a positive indicator for investors and creditors. However, it is essential to monitor any significant changes in the ratio over time to assess the company's ability to meet its debt obligations effectively.
Peer comparison
Dec 31, 2024