Sylvamo Corp (SLVM)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||
|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,872,000 | 2,785,000 | 2,823,000 | 2,798,000 | 2,710,000 | 2,797,000 | 2,741,000 |
| Total stockholders’ equity | US$ in thousands | 901,000 | 836,000 | 862,000 | 790,000 | 678,000 | 258,000 | 252,000 |
| Financial leverage ratio | 3.19 | 3.33 | 3.27 | 3.54 | 4.00 | 10.84 | 10.88 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,872,000K ÷ $901,000K
= 3.19
The financial leverage ratio of Sylvamo Corp has been fluctuating over the past five quarters, ranging from 3.19 to 4.00. A higher financial leverage ratio indicates a greater reliance on debt financing to fund the company's operations and investments.
Sylvamo Corp's financial leverage ratio peaked at 4.00 in Q4 2022, showing a high level of debt compared to equity in that period. Subsequently, the ratio decreased in the following quarters, reaching its lowest point of 3.19 in Q4 2023. This decline may suggest a reduction in the company's reliance on debt financing or an increase in equity levels to support its operations.
Overall, monitoring changes in Sylvamo Corp's financial leverage ratio can provide insights into the company's capital structure and financial risk profile. A stable or decreasing trend in the ratio may indicate improved financial stability and reduced vulnerability to economic downturns or changes in interest rates. However, it is essential for investors and stakeholders to consider the optimal level of leverage based on the company's industry, growth prospects, and risk tolerance.
Peer comparison
Dec 31, 2023