Pilgrims Pride Corp (PPC)
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 | 9,810,360 | 9,927,820 | 9,922,510 | 9,227,500 | 9,255,770 | 9,079,010 | 9,322,930 | 9,317,870 | 8,913,200 | 8,832,840 | 7,748,840 | 7,480,760 | 7,474,500 | 7,469,500 | 7,156,580 | 7,251,980 | 7,102,360 | 6,603,130 | 6,527,920 | 6,372,930 |
| Total stockholders’ equity | US$ in thousands | 3,331,370 | 3,077,580 | 3,059,230 | 2,893,610 | 2,840,810 | 2,727,720 | 2,860,200 | 2,781,630 | 2,577,080 | 2,604,240 | 2,582,480 | 2,723,910 | 2,563,760 | 2,420,850 | 2,364,180 | 2,465,910 | 2,525,660 | 2,319,860 | 2,263,350 | 2,134,600 |
| Financial leverage ratio | 2.94 | 3.23 | 3.24 | 3.19 | 3.26 | 3.33 | 3.26 | 3.35 | 3.46 | 3.39 | 3.00 | 2.75 | 2.92 | 3.09 | 3.03 | 2.94 | 2.81 | 2.85 | 2.88 | 2.99 |
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 shown some fluctuations over the past eight quarters. The ratio has ranged from a low of 2.94 in Q4 2023 to a high of 3.35 in Q1 2022.
A financial leverage ratio above 1 indicates that the company is relying more on debt financing than equity financing. Pilgrim's Pride Corp. has consistently maintained a ratio above 1, indicating a significant reliance on debt to fund its operations and growth.
The decreasing trend from Q1 2022 to Q4 2023 suggests that the company may be taking steps to reduce its debt levels or increase its equity capital. However, the ratio is still relatively high, indicating that the company's financial risk remains elevated due to its high debt levels.
Investors and stakeholders should closely monitor Pilgrim's Pride Corp.'s efforts to manage its debt levels and improve its financial position to ensure long-term sustainability and profitability.
Peer comparison
Dec 31, 2023