PPG Industries Inc (PPG)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 21,647,000 | 20,744,000 | 21,351,000 | 19,556,000 | 17,708,000 |
| Total stockholders’ equity | US$ in thousands | 7,832,000 | 6,592,000 | 6,286,000 | 5,689,000 | 5,284,000 |
| Financial leverage ratio | 2.76 | 3.15 | 3.40 | 3.44 | 3.35 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $21,647,000K ÷ $7,832,000K
= 2.76
The financial leverage ratio of PPG Industries, Inc. has exhibited a decreasing trend from 3.44 in 2020 to 2.76 in 2023. This indicates an improvement in the company's ability to meet its financial obligations using debt financing. A lower financial leverage ratio suggests lower financial risk and reduced dependence on debt to finance operations. PPG Industries, Inc. has managed to optimize its capital structure over the years, potentially enhancing its financial stability and flexibility. It would be beneficial for the company to continue monitoring and managing its leverage ratio to maintain a balanced approach towards debt and equity financing.
Peer comparison
Dec 31, 2023