Clearwater Paper Corporation (CLW)

Debt-to-equity 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-equity ratio		0.69	0.87	0.92	0.95	0.99	0.99	1.08	1.17	1.25	1.38	1.47	1.34	1.37	1.58	1.76	1.99	2.05	2.04	1.55	1.55

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $462,300K ÷ $668,800K
= 0.69

The debt-to-equity ratio of Clearwater Paper Corp has displayed fluctuations over the past eight quarters, ranging from a low of 0.69 in Q4 2023 to a high of 1.17 in Q1 2022. The trend indicates a general increase in leverage from Q1 2022 to Q4 2022, with the ratio peaking at 1.17 before experiencing some variability in subsequent quarters.

A debt-to-equity ratio above 1 suggests that the company relies more on debt financing than equity financing to fund its operations and growth. It is notable that the ratio has consistently remained above 1 since Q2 2022, indicating a higher proportion of debt in Clearwater Paper Corp's capital structure compared to equity.

Investors and stakeholders should closely monitor the company's ability to service its debt obligations given the elevated debt levels as reflected in the ratio. Additionally, fluctuations in the ratio highlight the company's changing financial leverage position over time and may indicate shifts in its capital structure strategy or business performance.