Mercer International Inc (MERC)

Debt-to-equity 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-equity ratio		2.53	2.39	1.91	1.68	1.61	1.86	1.66	1.65	1.78	1.85	1.92	2.11	1.97	2.04	2.25	2.46	1.98	1.66	1.52	1.62

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $1,609,420K ÷ $635,410K
= 2.53

The debt-to-equity ratio of Mercer International Inc. has been fluctuating over the past eight quarters, ranging from 1.61 to 2.54. A higher debt-to-equity ratio indicates that the company is relying more on debt to finance its operations compared to equity.

In Q4 2023, the debt-to-equity ratio increased to 2.54 from 2.40 in Q3 2023, signaling a higher proportion of debt in the company's capital structure. This increase may indicate that Mercer International Inc. has taken on more debt, potentially to fund expansion or operations.

Comparing Q4 2023 to previous quarters, the debt-to-equity ratio is higher than in both Q2 2023 (1.92) and Q1 2023 (1.68). This suggests a significant increase in leverage or a decrease in equity relative to debt during this period.

On a year-over-year basis, the debt-to-equity ratio in Q4 2023 is higher than in the same quarter of the previous year (Q4 2022 - 1.61). This indicates a higher reliance on debt financing compared to the previous year.

Overall, the increasing trend in the debt-to-equity ratio of Mercer International Inc. over the quarters may indicate a growing financial leverage and potentially higher financial risk. It is important for stakeholders to closely monitor the company's debt levels and its ability to manage debt servicing costs.