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 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021
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 2,709,000 2,597,000 2,737,000
Total stockholders’ equity US$ in thousands 901,000 836,000 862,000 790,000 678,000 258,000 252,000 331,000 182,000 265,000
Financial leverage ratio 3.19 3.33 3.27 3.54 4.00 10.84 10.88 8.18 14.27 10.33

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

Company name
Symbol
Financial leverage ratio
Sylvamo Corp
SLVM
3.19
International Paper
IP
2.78
Mativ Holdings Inc.
MATV
2.78