Mercer International Inc (MERC)
Debt-to-equity ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 1,609,420 | 1,346,510 | 1,237,540 | 1,186,620 | 1,087,930 |
| Total stockholders’ equity | US$ in thousands | 635,410 | 838,784 | 694,024 | 601,027 | 550,403 |
| Debt-to-equity ratio | 2.53 | 1.61 | 1.78 | 1.97 | 1.98 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,609,420K ÷ $635,410K
= 2.53
Mercer International Inc.'s debt-to-equity ratio has shown fluctuations over the past five years. The ratio increased from 1.61 in 2019 to 2.03 in 2020, indicating a higher reliance on debt financing relative to equity. Subsequently, there was a downward trend in 2021 with the ratio dropping to 1.80, suggesting a decrease in the proportion of debt to equity in the company's capital structure. This trend reversed in 2022 with the ratio rising to 1.61, indicating an uptick in debt relative to equity.
The most recent data in 2023 shows a significant increase in the debt-to-equity ratio to 2.54, signifying a relatively high level of debt compared to equity. This sharp increase may raise concerns about the company's financial risk and leverage. Overall, Mercer International Inc.'s debt-to-equity ratio has been variable in recent years, indicating fluctuations in the company's capital structure and financial leverage.