International Paper (IP)
Financial leverage 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 22,800,000 | 23,161,000 | 23,063,000 | 23,028,000 | 23,261,000 | 23,951,000 | 23,683,000 | 23,771,000 | 23,940,000 | 24,865,000 | 25,282,000 | 25,158,000 | 25,243,000 | 29,471,000 | 31,448,000 | 31,477,000 | 31,718,000 | 31,840,000 | 32,519,000 | 33,215,000 |
| 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 |
| Financial leverage ratio | 2.79 | 2.68 | 2.68 | 2.79 | 2.78 | 2.70 | 2.82 | 2.83 | 2.82 | 2.62 | 2.80 | 2.83 | 2.78 | 3.06 | 3.77 | 4.06 | 4.04 | 4.49 | 4.61 | 4.84 |
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 been gradually declining over the past few years, indicating a trend towards lower leverage and potentially reduced financial risk.
The ratio stood at 4.84 as of March 31, 2020, and has consistently decreased to 2.79 by June 30, 2024. This suggests that the company has been effectively managing its debt levels relative to its equity, which can be a positive sign for investors and creditors.
The decreasing trend in the financial leverage ratio could indicate that International Paper is becoming less reliant on debt to finance its operations, which can lead to greater financial stability and flexibility in the long run.
Overall, the downward trend in the financial leverage ratio of International Paper reflects a prudent approach towards managing its capital structure and indicates a potentially healthier financial position for the company.
Peer comparison
Dec 31, 2024