International Paper (IP)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 22,800,000 | 23,261,000 | 23,940,000 | 25,243,000 | 31,718,000 |
| Total stockholders’ equity | US$ in thousands | 8,173,000 | 8,355,000 | 8,497,000 | 9,082,000 | 7,854,000 |
| Financial leverage ratio | 2.79 | 2.78 | 2.82 | 2.78 | 4.04 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $22,800,000K ÷ $8,173,000K
= 2.79
The financial leverage ratio of International Paper has decreased steadily from 4.04 at the end of 2020 to 2.78 at the end of 2021, and has remained relatively stable around 2.78 to 2.82 in the subsequent years up to 2024. This indicates that the company has been effectively managing its debt levels in relation to its equity over the years. A lower financial leverage ratio suggests a lower dependence on debt financing, which may reduce financial risk and increase financial stability. International Paper's consistent moderation of its leverage ratio demonstrates a prudent approach to managing its capital structure and financial health.
Peer comparison
Dec 31, 2024