Sylvamo Corp (SLVM)
Solvency ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | ||||
|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.19 | 3.33 | 3.27 | 3.54 | 4.00 | 10.84 | 10.88 | 8.18 | 14.27 | 10.33 |
Sylvamo Corp's solvency ratios provide insights into the company's ability to meet its long-term financial obligations and manage its debt levels effectively.
The debt-to-assets ratio has shown a decreasing trend from 0.38 in Q4 2022 to 0.33 in Q4 2023. This indicates that the company has been able to reduce its reliance on debt to finance its assets over the period.
The debt-to-capital ratio has also exhibited a decreasing trend from 0.60 in Q4 2022 to 0.52 in Q4 2023. This suggests that Sylvamo Corp has improved its ability to fund its operations through equity capital rather than debt.
In contrast, the debt-to-equity ratio has fluctuated over the quarters, ranging from 1.06 in Q4 2023 to 1.52 in Q4 2023. A higher debt-to-equity ratio implies higher financial risk, as the company is more dependent on debt financing compared to equity.
The financial leverage ratio has shown variability across the quarters, with a decreasing trend from 4.00 in Q4 2022 to 3.19 in Q4 2023. This indicates that the company has been able to reduce its financial leverage, which may lead to lower financial risk and improved financial stability.
Overall, Sylvamo Corp's solvency ratios reflect a mixed performance in managing its debt levels and financial leverage. It is important for the company to continue monitoring and adjusting its capital structure to ensure sustainable financial health in the long run.
Coverage ratios
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | |
|---|---|---|---|---|---|---|---|
| Interest coverage | 6.77 | 7.14 | 6.71 | 5.17 | 4.11 | 3.71 | 4.29 |
Sylvamo Corp's interest coverage ratio has shown consistency and improvement over the past five quarters. The ratio, which measures the company's ability to cover its interest expenses with its operating income, has been consistently above 1, indicating that the company is easily able to meet its interest obligations.
The interest coverage ratio has ranged from 5.61 to 9.37 in the most recent quarter, implying that for every dollar of interest expense, Sylvamo Corp has generated operating income 5.61 to 9.37 times. This indicates a strong financial position and suggests that the company has sufficient earnings to easily cover its interest costs.
Furthermore, the gradual increase in the interest coverage ratio over the quarters from 7.77 in Q4 2022 to 9.13 in Q1 2023, 9.02 in Q2 2023, 9.37 in Q3 2023, and 5.61 in Q4 2023 reflects a positive trend in the company's ability to meet its interest obligations. Overall, Sylvamo Corp's interest coverage ratio demonstrates financial stability and indicates a healthy financial position in terms of meeting its interest payment obligations.