Smurfit WestRock plc (SW)
Financial leverage ratio
| Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Jun 30, 2023 | Dec 31, 2022 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 27 | 0 | 12,628,000 | 12,434,000 | 12,482,000 |
| Total stockholders’ equity | US$ in thousands | 14 | 0 | 5,560,000 | 5,357,000 | 5,025,000 |
| Financial leverage ratio | 1.93 | — | 2.27 | 2.32 | 2.48 |
June 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $27K ÷ $14K
= 1.93
The financial leverage ratio of Smurfit WestRock plc has shown a decreasing trend over the past few quarters. As of June 30, 2024, the financial leverage ratio stood at 1.93, a decrease from the previous quarter where the data was not available.
Comparing this to the ratios from the previous quarters, we see a decline from 2.27 as of March 31, 2024, and a more significant decrease from 2.48 as of December 31, 2022. This suggests that the company has been reducing its reliance on debt to finance its operations and investments.
A lower financial leverage ratio indicates that the company is using less debt relative to equity in its capital structure, which can be seen as a positive sign of financial stability and lower financial risk. However, it is essential to consider the reasons behind this decline and assess whether it aligns with the company's long-term strategic goals and overall financial health.
Peer comparison
Jun 30, 2024