Pilgrims Pride Corp (PPC)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 9,810,360 | 9,255,770 | 8,913,200 | 7,474,500 | 7,102,360 |
| Total stockholders’ equity | US$ in thousands | 3,331,370 | 2,840,810 | 2,577,080 | 2,563,760 | 2,525,660 |
| Financial leverage ratio | 2.94 | 3.26 | 3.46 | 2.92 | 2.81 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,810,360K ÷ $3,331,370K
= 2.94
The financial leverage ratio of Pilgrim's Pride Corp. has exhibited fluctuations over the past five years. The ratio decreased from 2.81 in 2019 to 2.92 in 2020, indicating a slightly lower level of financial leverage. However, in 2021, the ratio increased significantly to 3.46, reflecting a higher degree of leverage. This trend continued in 2022 with a further increase to 3.26.
Interestingly, in 2023, there was a notable decrease in the financial leverage ratio to 2.94, signaling a reduction in the company's reliance on debt to finance its operations. It is important to assess the reasons behind these fluctuations in order to understand the company's capital structure and risk profile more accurately. A high leverage ratio suggests increased financial risk due to higher levels of debt, while a lower ratio implies a more conservative approach to financing the business.
Peer comparison
Dec 31, 2023