Sylvamo Corp (SLVM)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | ||
|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — |
| Total stockholders’ equity | US$ in thousands | 901,000 | 678,000 | 182,000 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $901,000K)
= 0.00
The debt-to-capital ratio of Sylvamo Corp has shown fluctuating trends over the past four years. In 2020, the ratio was exceptionally low at 0.01, indicating a minimal level of debt relative to the company's total capital. However, in 2021, there was a significant increase in the debt-to-capital ratio to 0.88, suggesting a substantial reliance on debt to fund the company's operations and investments.
Subsequently, in 2022, there was a slight decrease in the ratio to 0.60, indicating a reduction in the proportion of debt in the capital structure compared to the previous year. By the end of 2023, the debt-to-capital ratio further improved to 0.52, signaling a lower level of debt usage in relation to the company's total capital.
Overall, the downward trend in the debt-to-capital ratio from 2021 to 2023 indicates that Sylvamo Corp has been gradually reducing its debt burden and moving towards a more balanced capital structure. This evolution suggests a potentially healthier financial position and lower financial risk for the company.
Peer comparison
Dec 31, 2023