Sylvamo Corp (SLVM)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $901,000K
= 0.00
The debt-to-equity ratio of Sylvamo Corp has shown significant fluctuations over the past four years. In 2020, the ratio was extremely low at 0.01, indicating that the company had very little debt relative to its equity. This suggests a conservative capital structure at that time.
However, the ratio spiked to 7.69 in 2021, signaling a substantial increase in debt compared to equity. This sudden change could be a cause for concern as it may indicate a higher financial risk and leverage within the company.
In 2022, the ratio decreased to 1.52, which still indicates a higher reliance on debt than in 2020 but a significant improvement from the previous year. This could suggest that the company took steps to reduce its debt levels or increase its equity base.
By the end of 2023, the debt-to-equity ratio further decreased to 1.06, indicating a continued trend of reducing financial leverage and improving the balance between debt and equity in the company's capital structure.
Overall, the fluctuation in Sylvamo Corp's debt-to-equity ratio over the four-year period demonstrates varying levels of financial risk and capital structure management. The company appears to have made efforts to bring the ratio down towards a more balanced and sustainable level.
Peer comparison
Dec 31, 2023