Clearwater Paper Corporation (CLW)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| Financial leverage ratio | 2.50 | 2.68 | 2.77 | 2.86 | 2.98 | 2.99 | 3.14 | 3.18 | 3.30 | 3.49 | 3.59 | 3.36 | 3.45 | 3.68 | 3.91 | 4.26 | 4.35 | 4.43 | 4.50 | 4.46 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,671,800K ÷ $668,800K
= 2.50
The financial leverage ratio of Clearwater Paper Corp has been showing a decreasing trend over the past eight quarters, indicating a potential improvement in the company's financial health in terms of debt management. The ratio decreased from 2.98 in Q4 2022 to 2.50 in Q4 2023. This signifies that the company has been relying less on debt to finance its operations and growth.
A financial leverage ratio of 2.50 means that for every dollar of equity, Clearwater Paper Corp has $2.50 of debt. This level of leverage is considered moderate and indicates a reasonable balance between debt and equity financing.
Overall, the decreasing trend in the financial leverage ratio suggests that Clearwater Paper Corp has been effectively managing its debt levels, potentially reducing its financial risk and increasing its ability to weather economic downturns. It also indicates improved financial stability and potentially better investment opportunities for the company.