International Paper (IP)
Debt-to-assets 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 | 5,455,000 | — | — | — | 4,816,000 | — | — | — | 5,383,000 | — | 2,200,000 | 2,100,000 | 8,042,000 | 2,120,000 | 9,432,000 | 2,087,000 | 9,597,000 | 9,957,000 | 10,050,000 | 9,965,000 |
| Total assets | US$ in thousands | 23,261,000 | 23,951,000 | 23,683,000 | 23,771,000 | 23,940,000 | 24,865,000 | 25,282,000 | 25,158,000 | 25,243,000 | 29,471,000 | 31,448,000 | 31,477,000 | 31,718,000 | 31,840,000 | 32,519,000 | 33,215,000 | 33,471,000 | 33,848,000 | 34,347,000 | 34,178,000 |
| Debt-to-assets ratio | 0.23 | 0.00 | 0.00 | 0.00 | 0.20 | 0.00 | 0.00 | 0.00 | 0.21 | 0.00 | 0.07 | 0.07 | 0.25 | 0.07 | 0.29 | 0.06 | 0.29 | 0.29 | 0.29 | 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 remained relatively stable over the past eight quarters, ranging from 0.30 to 0.33. This indicates that, on average, around 30-33% of the company's total assets are financed by debt.
A debt-to-assets ratio of 0.33 in Q4 2023 suggests that the company's level of debt relative to its total assets has slightly increased compared to the previous quarter. This may indicate a higher reliance on debt financing during this period.
Overall, the consistent range of the debt-to-assets ratio over the quarters implies that International Paper Co. has maintained a balanced capital structure, utilizing a mix of debt and equity to fund its operations and investments. A lower ratio would indicate less financial risk, while a higher ratio may suggest a higher level of leverage and potential financial risk.
Further analysis, including comparison with industry peers and trend analysis over a longer period, would provide a more comprehensive understanding of the company's debt management strategies and financial health.
Peer comparison
Dec 31, 2023