Clearwater Paper Corporation (CLW)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 462,300 | 564,900 | 637,600 | 716,400 | 884,500 |
| Total assets | US$ in thousands | 1,671,800 | 1,703,500 | 1,690,100 | 1,800,400 | 1,877,700 |
| Debt-to-assets ratio | 0.28 | 0.33 | 0.38 | 0.40 | 0.47 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $462,300K ÷ $1,671,800K
= 0.28
The debt-to-assets ratio of Clearwater Paper Corp has decreased steadily over the past five years, indicating a decreasing reliance on debt to finance its assets. The ratio stood at 0.28 as of December 31, 2023, down from 0.33 in the previous year, 0.38 in 2021, 0.40 in 2020, and 0.48 in 2019. This trend suggests that the company has been effectively managing its debt levels relative to its total assets, potentially reducing financial risk and improving overall financial health. A lower debt-to-assets ratio generally indicates a lower financial risk and greater solvency for the company, as it implies that Clearwater Paper Corp has a higher proportion of assets financed by equity rather than debt. This may be viewed positively by investors and creditors as it signals a stronger financial position and potentially better capacity to weather economic downturns or volatility in the market.