Sealed Air Corporation (SEE)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 7,200,600 | 6,214,700 | 6,229,300 | 6,083,800 | 5,765,200 |
| Total stockholders’ equity | US$ in thousands | 549,500 | 344,100 | 248,700 | 172,500 | -196,200 |
| Financial leverage ratio | 13.10 | 18.06 | 25.05 | 35.27 | — |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,200,600K ÷ $549,500K
= 13.10
The financial leverage ratio measures the extent to which a company relies on debt to finance its operations and growth. In the case of Sealed Air Corp., the trend in the financial leverage ratio has been decreasing over the years from 35.27 in 2020 to 13.10 in 2023. This indicates that the company has been reducing its reliance on debt to fund its activities.
A lower financial leverage ratio suggests that the company may have a strong equity base and sufficient internal resources to support its operations without taking on excessive debt. It also implies lower financial risk as the company is less vulnerable to fluctuations in interest rates or debt repayment obligations.
Overall, the decreasing trend in Sealed Air Corp.'s financial leverage ratio is a positive sign of improved financial health and stability. Investors and stakeholders may view this as a favorable indicator of the company's ability to manage its financial obligations effectively.
Peer comparison
Dec 31, 2023