International Paper (IP)
Debt-to-capital ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 8,173,000 | 8,629,000 | 8,595,000 | 8,257,000 | 8,355,000 | 8,882,000 | 8,404,000 | 8,389,000 | 8,497,000 | 9,488,000 | 9,043,000 | 8,887,000 | 9,082,000 | 9,622,000 | 8,352,000 | 7,758,000 | 7,854,000 | 7,093,000 | 7,057,000 | 6,857,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2024 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $8,173,000K)
= 0.00
Based on the data provided, International Paper has consistently maintained a debt-to-capital ratio of 0.00% across all quarters from March 31, 2020, to December 31, 2024. This indicates that the company has not utilized debt significantly to finance its operations and investments relative to its total capital structure.
A debt-to-capital ratio of 0.00% suggests that the company's capital structure is predominantly equity-financed, which can be viewed positively as it indicates a lower level of financial risk due to limited reliance on debt to fund its activities. However, it's important to note that while a low debt-to-capital ratio can be beneficial in terms of financial stability and flexibility, it may also imply missed opportunities for leveraging financial leverage for growth and expansion.
In summary, International Paper's consistent debt-to-capital ratio of 0.00% reflects a cautious approach to debt management and a focus on maintaining a conservative capital structure. This strategy may indicate a desire to minimize financial risk and maintain financial stability in the long term.
Peer comparison
Dec 31, 2024