International Paper (IP)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 23,261,000 | 23,940,000 | 25,243,000 | 31,718,000 | 33,471,000 |
| Total stockholders’ equity | US$ in thousands | 8,355,000 | 8,497,000 | 9,082,000 | 7,854,000 | 7,713,000 |
| Financial leverage ratio | 2.78 | 2.82 | 2.78 | 4.04 | 4.34 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $23,261,000K ÷ $8,355,000K
= 2.78
The financial leverage ratio of International Paper Co. has shown a decreasing trend over the past five years, with values of 2.78 in 2023, 2.82 in 2022, 2.78 in 2021, 4.04 in 2020, and 4.34 in 2019. This indicates that the company has been using less debt to finance its operations as compared to previous years. A lower financial leverage ratio suggests that the company relies less on debt financing and may have a stronger equity position, which could reduce its financial risk and increase its financial stability. It is essential for investors and stakeholders to consider this trend in evaluating the company's capital structure and risk profile.
Peer comparison
Dec 31, 2023