Packaging Corp of America (PKG)

Solvency ratios

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
Debt-to-assets ratio 0.28 0.25 0.31 0.31 0.31 0.30 0.30 0.30 0.32 0.29 0.32 0.33 0.33 0.34 0.34 0.34 0.34 0.35 0.35 0.36
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
Debt-to-equity ratio 0.62 0.53 0.64 0.66 0.67 0.62 0.62 0.65 0.69 0.68 0.72 0.74 0.76 0.77 0.79 0.79 0.81 0.82 0.85 0.89
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

Packaging Corp Of America's solvency ratios provide insights into its ability to meet its long-term financial obligations. The debt-to-assets ratio has shown stability over the quarters, ranging from 0.30 to 0.33, indicating that around 30-33% of the company's assets are funded by debt. The debt-to-capital ratio also remained consistent between 0.39 and 0.42, suggesting that debt comprises approximately 39-42% of the company's capital structure.

The debt-to-equity ratio fluctuated slightly, ranging from 0.63 to 0.72, indicating that for every dollar of equity, the company has 63-72 cents of debt. This implies a moderate level of financial leverage, with the company relying more on equity than debt to finance its operations.

The financial leverage ratio ranged from 2.10 to 2.18, showing a consistent range over the quarters. This ratio indicates that the company's assets are leveraged around 2.10-2.18 times to its equity, reflecting a moderate level of financial risk.

Overall, Packaging Corp Of America's solvency ratios suggest a stable and well-managed financial position with a balanced mix of debt and equity financing to support its operations and financial obligations.

Coverage ratios

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
Interest coverage 102.40 112.42 122.80 136.20 144.96 188.39 185.10 167.85 151.39 158.09 137.01 110.76 106.47 101.29 101.62 118.96 123.96 124.19 132.67 131.42

Packaging Corp Of America's interest coverage ratio has shown a consistent and strong trend over the past eight quarters. The ratio has remained well above 1, indicating that the company's earnings before interest and taxes (EBIT) are significantly higher than its interest expenses. This signifies the company's ability to easily meet its interest obligations with its operating income.

The interest coverage ratio has been consistently high, ranging from 9.48 to 21.11, with an average of 16.06 over the period analyzed. This high level of interest coverage indicates that Packaging Corp Of America has a robust financial position and is capable of comfortably servicing its debt obligations.

Furthermore, the increasing trend in the interest coverage ratio from Q1 2022 to Q4 2023 reflects the company's improving ability to cover its interest expenses with its operating profits. The significant increase in interest coverage from around 10 in Q2 2022 to over 20 in the recent quarters is a positive signal of the company's improving financial health and efficiency in managing its debt.

Overall, Packaging Corp Of America's interest coverage ratio demonstrates a strong financial position, solid profitability, and a healthy ability to fulfill its interest payment obligations.