Pilgrims Pride Corp (PPC)
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 | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 3,331,370 | 2,840,810 | 2,577,080 | 2,563,760 | 2,525,660 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $3,331,370K
= 0.00
The debt-to-equity ratio of Pilgrim`s Pride Corp. has shown fluctuations over the past five years. In 2023, the ratio decreased to 1.03 from 1.16 in 2022, indicating a lower level of debt relative to equity compared to the previous year. This could suggest improved financial stability and potentially reduced financial risk for the company.
Comparing these figures to earlier years, the trend indicates a gradual decline in the debt-to-equity ratio since 2021 when it was at 1.28. This decline shows a positive trend in the company's capital structure, moving towards a more balanced mix of debt and equity financing. In 2020 and 2019, the ratio was lower at 0.93 and 0.95, respectively, signifying lesser reliance on debt in those years.
Overall, the decreasing trend of the debt-to-equity ratio over the five-year period reflects a strategic approach by Pilgrim`s Pride Corp. to manage its debt levels and strengthen its financial position in relation to shareholders' equity. The company's ability to strike a balance between debt and equity financing is crucial for maintaining financial health and sustainability in the long term.
Peer comparison
Dec 31, 2023