Clearwater Paper Corporation (CLW)

Debt-to-assets 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
Long-term debt	US$ in thousands	462,300	564,800	564,800	564,900	564,900	564,900	589,900	617,700	637,600	676,500	716,200	716,300	716,400	785,500	827,900	883,900	884,500	866,702	671,676	671,484
Total assets	US$ in thousands	1,671,800	1,737,000	1,705,000	1,690,500	1,703,500	1,703,600	1,712,700	1,683,100	1,690,100	1,718,100	1,750,900	1,803,900	1,800,400	1,826,900	1,841,500	1,896,800	1,877,700	1,881,080	1,955,850	1,928,280
Debt-to-assets ratio		0.28	0.33	0.33	0.33	0.33	0.33	0.34	0.37	0.38	0.39	0.41	0.40	0.40	0.43	0.45	0.47	0.47	0.46	0.34	0.35

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 been relatively stable over the past eight quarters, ranging from 0.28 to 0.37. A lower debt-to-assets ratio indicates lower financial risk, as it reflects the proportion of a company's assets that are financed by debt.

In general, a lower debt-to-assets ratio suggests that Clearwater Paper Corp relies less on debt to finance its operations and investments, which can be viewed positively by investors and creditors. However, it is essential to consider industry norms and the company's overall financial health when assessing the significance of this ratio.

The gradual increase in the debt-to-assets ratio from Q1 2022 to Q1 2023 indicates a slightly higher reliance on debt financing over time. Investors should keep an eye on this trend to ensure Clearwater Paper Corp's ability to manage its debt levels effectively and maintain financial stability.