Pilgrims Pride Corp (PPC)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 10,650,600 | 10,700,500 | 10,078,500 | 9,768,340 | 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 |
| Total stockholders’ equity | US$ in thousands | 4,239,410 | 4,204,590 | 3,731,540 | 3,480,660 | 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 |
| Financial leverage ratio | 2.51 | 2.54 | 2.70 | 2.81 | 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 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,650,600K ÷ $4,239,410K
= 2.51
The financial leverage ratio of Pilgrims Pride Corp has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio started at 2.94 on March 31, 2020, increased steadily to reach a peak of 3.46 on December 31, 2021, before gradually declining to 2.51 on December 31, 2024.
The company's financial leverage ratio indicates the proportion of debt in its capital structure compared to equity. A higher financial leverage ratio suggests that the company is relying more on debt to finance its operations, which can increase financial risk but also potentially amplify returns.
Pilgrims Pride Corp's increasing financial leverage ratio from 2020 to 2021 might indicate a strategic decision to utilize more debt to fund growth opportunities or acquisitions during that period. However, the subsequent decrease in the ratio from 2021 to 2024 suggests a shift towards a more balanced capital structure, possibly to manage financial risk and ensure financial stability.
Overall, the fluctuations in Pilgrims Pride Corp's financial leverage ratio highlight the importance of monitoring changes in the company's debt levels relative to equity to assess its financial risk and performance.
Peer comparison
Dec 31, 2024