PPG Industries Inc (PPG)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 19,433,000 | 21,647,000 | 20,744,000 | 21,351,000 | 19,556,000 |
| Total stockholders’ equity | US$ in thousands | 6,785,000 | 7,832,000 | 6,592,000 | 6,286,000 | 5,689,000 |
| Financial leverage ratio | 2.86 | 2.76 | 3.15 | 3.40 | 3.44 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $19,433,000K ÷ $6,785,000K
= 2.86
The financial leverage ratio of PPG Industries Inc has exhibited a gradual decreasing trend over the past five years, declining from 3.44 in 2020 to 2.86 in 2024. This trend suggests that the company has been effectively managing its debt levels relative to its equity during this period. However, it is important to note that the ratio experienced a significant drop from 3.15 in 2022 to 2.76 in 2023, indicating a potential shift in the company's capital structure or debt management strategy during that particular year. Overall, the decreasing trend in the financial leverage ratio indicates that PPG Industries Inc has been reducing its reliance on debt financing and potentially improving its financial stability and risk management practices over the years.
Peer comparison
Dec 31, 2024