Mercer International Inc (MERC)

Debt-to-capital 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	1,609,420	1,589,780	1,403,860	1,378,530	1,346,510	1,339,090	1,245,910	1,264,520	1,237,540	1,162,380	1,157,870	1,197,790	1,186,620	1,124,200	1,114,070	1,136,450	1,087,930	984,087	983,644	1,007,770
Total stockholders’ equity	US$ in thousands	635,410	665,452	733,469	822,873	838,784	720,349	752,122	768,334	694,024	627,836	604,134	567,638	601,027	550,707	494,260	462,768	550,403	591,387	646,525	620,682
Debt-to-capital ratio		0.72	0.70	0.66	0.63	0.62	0.65	0.62	0.62	0.64	0.65	0.66	0.68	0.66	0.67	0.69	0.71	0.66	0.62	0.60	0.62

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,609,420K ÷ ($1,609,420K + $635,410K)
= 0.72

The debt-to-capital ratio for Mercer International Inc. has shown a fluctuating trend over the eight quarters analyzed. The ratio has ranged from 0.62 to 0.72 during this period. In the latest quarter, Q4 2023, the ratio stands at 0.72, indicating that debt forms 72% of the company's total capital.

It is worth noting that the ratio has generally been on an upward trajectory since Q1 2023, suggesting an increasing reliance on debt financing relative to the company's capital structure. However, the ratio remains within a relatively stable range between 0.62 and 0.72, indicating a consistent level of debt utilization by Mercer International Inc.

Overall, while the company's debt-to-capital ratio has shown some fluctuations, it is crucial to consider additional factors such as the company's industry, business strategy, and market conditions to gain a comprehensive understanding of its financial leverage and risk profile.