Packaging Corp of America (PKG)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.01 | 2.05 | 2.18 | 2.20 | 2.22 | 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 |
Packaging Corp of America demonstrates a strong solvency position based on its solvency ratios over the past few years. The Debt-to-assets ratio has consistently remained at 0.00, indicating that the company has no debt in relation to its total assets. This suggests that Packaging Corp of America is financing its operations primarily through equity rather than debt.
Similarly, the Debt-to-capital ratio has also maintained a steady level of 0.00 across the same period, further emphasizing the company's conservative financial structure and low reliance on debt financing.
The Debt-to-equity ratio, which measures the proportion of debt to equity in the company's capital structure, has consistently remained at 0.00 as well. This indicates that Packaging Corp of America has zero debt in comparison to its equity, reflecting a strong financial position with a higher degree of equity financing.
Furthermore, the Financial leverage ratio presents a downward trend, decreasing from 2.33 in March 2020 to 2.01 in December 2024. This trend suggests that the company's reliance on debt has decreased over time, indicating improved financial stability and reduced financial risk.
Overall, the solvency ratios of Packaging Corp of America reflect a solid financial foundation with minimal debt obligations and a prudent approach to managing its capital structure.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 26.89 | 26.22 | 23.00 | 20.92 | 19.99 | 19.16 | 19.59 | 20.42 | 20.44 | 11.12 | 10.50 | 9.26 | 8.27 | 11.28 | 9.70 | 7.80 | 7.84 | 5.98 | 6.59 | 8.07 |
Packaging Corp of America's interest coverage ratio has shown fluctuations over the years based on the provided data. The interest coverage ratio indicates the company's ability to meet its interest payment obligations using its operating income.
From March 31, 2020, to December 31, 2022, the interest coverage ratio ranged between 5.98 and 20.44, indicating variability in the company's ability to cover its interest expenses. The ratio increased gradually from March 31, 2020, to September 30, 2021, showcasing an improvement in covering interest payments.
During December 31, 2022, to June 30, 2024, the interest coverage ratio increased significantly from 20.44 to 26.89, showcasing a notable improvement in the company's ability to cover its interest expenses. This implies that Packaging Corp of America has enhanced its ability to cover interest payments through its operating income during this period.
Overall, the trend indicates that Packaging Corp of America has consistently maintained a relatively healthy interest coverage ratio over the years, with some fluctuations observed during the period under review. A higher interest coverage ratio signifies a lower risk of financial distress due to interest payments, indicating a positive sign for the company's financial health.