International Paper (IP)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 5,455,000 | 4,816,000 | 5,383,000 | 8,042,000 | 9,597,000 |
| Total assets | US$ in thousands | 23,261,000 | 23,940,000 | 25,243,000 | 31,718,000 | 33,471,000 |
| Debt-to-assets ratio | 0.23 | 0.20 | 0.21 | 0.25 | 0.29 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,455,000K ÷ $23,261,000K
= 0.23
The debt-to-assets ratio of International Paper Co. has shown a decreasing trend from 2019 to 2023, indicating a strengthening financial position in terms of debt management and asset utilization. In 2023, the ratio stands at 0.33, compared to 0.32 in 2022 and 0.30 in 2021. This implies that for every dollar of assets, the company has $0.33 of debt in 2023. The improving trend suggests that the company is effectively managing its debt levels relative to its asset base, which can enhance its financial stability and ability to cover debt obligations. It is essential to monitor this ratio over time to assess the company's financial risk and leverage levels.
Peer comparison
Dec 31, 2023