Smurfit WestRock plc (SW)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Dec 31, 2022 | Jun 30, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 43,759,000 | 45,029,000 | 25 | 0 | 12,628,000 | — | 12,434,000 | 12,482,000 | — | — |
| Total stockholders’ equity | US$ in thousands | 17,360,000 | 17,965,000 | 13 | 0 | 5,560,000 | — | 5,357,000 | 5,025,000 | — | — |
| Financial leverage ratio | 2.52 | 2.51 | 1.92 | — | 2.27 | — | 2.32 | 2.48 | — | — |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $43,759,000K ÷ $17,360,000K
= 2.52
The financial leverage ratio of Smurfit WestRock plc has exhibited fluctuations over the past few periods. As of December 31, 2022, the financial leverage ratio stood at 2.48, indicating that the company's debt level was 2.48 times its equity. By June 30, 2023, this ratio decreased to 2.32, suggesting a reduction in financial risk.
Subsequently, the financial leverage ratio remained stable through December 31, 2023, at 2.27. However, by June 30, 2024, the ratio dropped notably to 1.92, which could signal improved financial health and reduced reliance on debt financing.
Despite this decrease, the financial leverage ratio increased again by September 30, 2024, reaching 2.51, and further rose to 2.52 by December 31, 2024. These increases may indicate a higher level of debt relative to equity, potentially increasing the company's financial risk and leverage.
Overall, while the company experienced fluctuations in its financial leverage ratio over the periods analyzed, it is essential for stakeholders to closely monitor the trend to assess the company's capital structure and risk management strategies effectively.
Peer comparison
Dec 31, 2024