Silgan Holdings Inc (SLGN)
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 | 7,611,240 | 7,812,310 | 7,913,720 | 7,861,720 | 7,345,760 | 7,519,410 | 7,874,500 | 7,710,410 | 7,770,850 | 7,547,840 | 6,724,320 | 6,441,470 | 6,511,590 | 6,452,580 | 6,373,060 | 5,528,540 | 4,931,060 | 5,074,020 | 5,111,220 | 4,924,570 |
| Total stockholders’ equity | US$ in thousands | 1,889,360 | 1,781,890 | 1,871,140 | 1,781,290 | 1,718,260 | 1,693,230 | 1,625,460 | 1,638,240 | 1,562,700 | 1,456,710 | 1,388,580 | 1,276,360 | 1,252,870 | 1,218,860 | 1,089,690 | 1,020,580 | 1,023,320 | 968,530 | 929,902 | 900,207 |
| Financial leverage ratio | 4.03 | 4.38 | 4.23 | 4.41 | 4.28 | 4.44 | 4.84 | 4.71 | 4.97 | 5.18 | 4.84 | 5.05 | 5.20 | 5.29 | 5.85 | 5.42 | 4.82 | 5.24 | 5.50 | 5.47 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $7,611,240K ÷ $1,889,360K
= 4.03
The financial leverage ratio of Silgan Holdings Inc. has been fluctuating over the past eight quarters, ranging from 4.03 to 4.84. The ratio indicates that the company's level of debt relative to its equity has been consistently high, with the values consistently above 4. This suggests that Silgan Holdings relies heavily on debt financing to support its operations and growth.
The downward trend seen from Q2 2022 to Q1 2023 could indicate a reduction in the proportion of debt in the company's capital structure. However, the ratio increased again in Q2 and Q3 2023, reflecting a potential increase in debt relative to equity during those periods. It is crucial for investors and stakeholders to closely monitor this trend to understand the company's financial risk profile and its ability to meet its obligations.
In summary, the financial leverage ratio analysis reveals that Silgan Holdings Inc. has maintained a relatively high level of financial leverage over the quarters, indicating a significant reliance on debt to finance its operations and investments.
Peer comparison
Dec 31, 2023