Clearwater Paper Corporation (CLW)

Solvency ratios

	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
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
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
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
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

Clearwater Paper Corp's solvency ratios indicate its ability to meet its long-term financial obligations.

The debt-to-assets ratio has shown a decreasing trend over the past year, indicating that Clearwater Paper Corp has been reducing its reliance on debt to finance its assets. This could be seen as a positive sign of improved financial health and risk management.

The debt-to-capital ratio and debt-to-equity ratio have also shown a decreasing trend over the same period. This indicates that Clearwater Paper Corp's long-term debt as a proportion of its total capital and equity has been decreasing, which is generally seen as a positive indication of financial stability and lower risk of default.

The financial leverage ratio, which measures the company's reliance on debt financing, has also decreased over the past year. This suggests that Clearwater Paper Corp has been able to manage its debt levels more effectively, reducing its financial risk and potentially improving its ability to weather economic downturns.

Overall, the downward trends in these solvency ratios suggest that Clearwater Paper Corp has been making positive strides in managing its debt levels and improving its financial stability. However, it is important to continue monitoring these ratios to ensure that the company maintains a healthy balance between debt and capital to sustain its long-term financial health.

Coverage ratios

	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
Interest coverage	5.52	4.69	4.36	3.46	3.13	3.76	2.66	0.17	-0.02	0.39	1.20	3.64	3.49	2.79	1.70	1.08	0.84	-1.97	-1.51	-1.82

Clearwater Paper Corp's interest coverage has shown a generally improving trend over the past eight quarters from Q1 2022 to Q4 2023. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt obligations. A higher ratio indicates the company is more capable of servicing its debt.

In Q1 2022, Clearwater Paper had an interest coverage ratio of 2.25, which means the company's operating income was 2.25 times higher than its interest expenses. Since then, the interest coverage ratio has steadily increased, reaching a peak of 6.31 in Q4 2023. This improvement suggests that Clearwater Paper's operational performance has strengthened, enabling the company to better handle its interest obligations.

Overall, the upward trend in Clearwater Paper's interest coverage ratio is a positive sign of the company's financial health and ability to manage its debt levels effectively. However, investors and analysts should continue to monitor this ratio in future periods to ensure the company's interest obligations remain manageable.