International Paper (IP)
Debt-to-equity 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 stockholders’ equity | US$ in thousands | 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 | 7,713,000 | 7,441,000 | 7,482,000 | 7,446,000 |
| Debt-to-equity ratio | 0.65 | 0.00 | 0.00 | 0.00 | 0.57 | 0.00 | 0.00 | 0.00 | 0.59 | 0.00 | 0.26 | 0.27 | 1.02 | 0.30 | 1.34 | 0.30 | 1.24 | 1.34 | 1.34 | 1.34 |
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 of International Paper Co. has fluctuated over the past eight quarters, ranging between 0.79 and 0.95. A higher ratio indicates a higher level of debt relative to equity in the company's capital structure.
From Q1 2022 to Q4 2022, there was an increasing trend in the debt-to-equity ratio, reaching a peak of 0.95 in Q1 2023. This suggests that the company had been relying more on debt financing during this period.
However, the ratio decreased in Q2 and Q3 2023, indicating a potential shift towards a lower level of debt usage compared to equity. This trend reversed in Q4 2023, where the ratio slightly increased to 0.92.
Overall, International Paper Co. has maintained a relatively moderate level of leverage over the past year, with the ratio hovering around 0.88 to 0.95. It is essential to monitor this ratio in the future to assess the company's financial leverage and risk management strategies.
Peer comparison
Dec 31, 2023