Packaging Corp of America (PKG)

Financial leverage 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
Total assets US$ in thousands 8,681,100 8,177,600 8,106,500 8,049,000 8,003,800 8,344,400 8,340,600 8,137,800 7,836,800 8,630,800 7,673,600 7,549,000 7,433,200 7,372,600 7,272,000 7,347,600 7,235,800 7,191,100 7,074,400 6,928,600
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
Financial leverage ratio 2.17 2.10 2.11 2.14 2.18 2.10 2.10 2.15 2.17 2.39 2.23 2.27 2.29 2.30 2.32 2.33 2.36 2.37 2.42 2.48

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,681,100K ÷ $3,997,300K
= 2.17

Packaging Corp Of America's financial leverage ratio has been relatively stable over the past eight quarters, ranging between 2.10 and 2.18. The financial leverage ratio measures the extent to which a company is using debt to finance its operations, with a higher ratio indicating a higher level of debt relative to equity. In this case, Packaging Corp Of America's financial leverage ratio has consistently been above 2, suggesting that the company relies more on debt financing compared to equity. This could indicate that the company may have higher financial risk due to its higher level of debt, potentially leading to higher interest expenses and financial obligations. Overall, monitoring the trend of the financial leverage ratio over time can provide insights into the company's capital structure and financial health.


Peer comparison

Dec 31, 2023

Company name
Symbol
Financial leverage ratio
Packaging Corp of America
PKG
2.17
Graphic Packaging Holding Company
GPK
4.02
Smurfit WestRock plc
SW
1.93
Sonoco Products Company
SON
2.97