Clearwater Paper Corporation (CLW)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	668,800	648,500	614,500	592,000	572,100	569,200	544,700	530,000	511,700	491,600	488,100	536,100	521,100	496,200	470,800	444,800	432,000	425,100	434,400	432,200
Debt-to-capital ratio		0.41	0.47	0.48	0.49	0.50	0.50	0.52	0.54	0.55	0.58	0.59	0.57	0.58	0.61	0.64	0.67	0.67	0.67	0.61	0.61

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $462,300K ÷ ($462,300K + $668,800K)
= 0.41

Clearwater Paper Corp's debt-to-capital ratio has shown a declining trend over the past quarters, decreasing from 0.54 in Q1 2022 to 0.41 in Q4 2023. This indicates that the company has been reducing its reliance on debt to finance its operations in relation to its total capital. A lower debt-to-capital ratio typically signifies lower financial risk and greater financial stability for the company. It is positive to see this downward trend as it suggests Clearwater Paper Corp is effectively managing its debt levels and maintaining a healthy balance between debt and equity in its capital structure. However, it is essential to continue monitoring this ratio to ensure that the company maintains a sustainable and optimal capital structure for future growth and financial stability.