International Paper (IP)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 8,355,000 | 8,497,000 | 9,082,000 | 7,854,000 | 7,713,000 |
| Debt-to-equity ratio | 0.65 | 0.57 | 0.59 | 1.02 | 1.24 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $5,455,000K ÷ $8,355,000K
= 0.65
The debt-to-equity ratio for International Paper Co. has exhibited fluctuations over the past five years. In 2023, the ratio stood at 0.92, reflecting a slight increase compared to the previous year's ratio of 0.90. This indicates that the company's debt levels relative to its equity increased slightly in 2023.
Looking back at 2021 and 2020, the trend shows a decrease in the debt-to-equity ratio from 0.85 to 1.57. This decline suggests that the company reduced its reliance on debt financing and improved its equity position during this period. However, the ratio increased significantly in 2020, highlighting a higher level of debt compared to equity, which may have raised concerns about the company's financial leverage.
Furthermore, in 2019, the debt-to-equity ratio was even higher at 1.81, indicating a relatively high level of debt relative to equity. This could suggest greater financial risk and potential challenges in servicing debt obligations.
Overall, the trend in International Paper Co.'s debt-to-equity ratio shows fluctuations over the last five years, with some years indicating a better balance between debt and equity, while others raise concerns about the company's leverage and financial risk. It would be important to monitor future changes in this ratio to assess the company's ongoing financial health and risk management strategies.
Peer comparison
Dec 31, 2023