Sylvamo Corp (SLVM)
Solvency ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 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 | 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 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.07 | 3.05 | 3.24 | 3.15 | 3.19 | 3.33 | 3.27 | 3.54 | 4.00 | 10.84 | 10.88 | 8.18 | 14.27 | 10.33 | 1.36 | 0.00 | 1.38 |
Sylvamo Corp's solvency ratios indicate a strong financial position with consistently low levels of debt in relation to its assets, capital, and equity. The Debt-to-Assets ratio has been maintained at 0.00 across all reporting periods, suggesting that the company has no debt relative to its total assets.
Similarly, the Debt-to-Capital and Debt-to-Equity ratios also remain at 0.00 throughout the analyzed periods, indicating that Sylvamo Corp is not heavily reliant on debt to finance its operations and investments. This signifies a conservative approach to capital structure and risk management.
The Financial Leverage ratio, which measures the extent of a company's financial leverage, shows fluctuations but generally remains at a low level. The significant increase in the ratio in the fourth quarter of 2021 may raise concerns, but subsequently, it declines and stabilizes around 3.00 in the following periods.
Overall, Sylvamo Corp's solvency ratios consistently demonstrate prudent financial management practices, ensuring a solid solvency position and reducing the risk of financial distress.
Coverage ratios
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 11.74 | 11.03 | 11.30 | 9.25 | 12.12 | 12.21 | 5.42 | 5.66 | 2.60 | 2.47 | 3.05 | 2.76 | 8.11 | 7.00 | 7.02 | 14.41 | 11.41 |
The interest coverage ratio of Sylvamo Corp has shown fluctuations over the period from December 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
From December 31, 2020, to March 31, 2021, the interest coverage ratio improved from 11.41 to 14.41, indicating that the company's earnings were more than sufficient to cover its interest expenses during this period.
However, from March 31, 2021, to September 30, 2022, the interest coverage ratio declined steadily, reaching a low point of 2.47 on September 30, 2022. This decline suggests that the company's ability to cover its interest expenses with its earnings deteriorated significantly during this period.
From September 30, 2022, to March 31, 2024, the interest coverage ratio showed some volatility but generally trended upwards, reaching a peak of 12.21 on September 30, 2023. This improvement indicates that the company's earnings better covered its interest expenses during this time frame.
Overall, while there were fluctuations in Sylvamo Corp's interest coverage ratio, the company managed to maintain a moderate level of coverage, ensuring that the earnings were generally sufficient to meet its interest obligations. However, it is important for the company to closely monitor and manage its interest expenses to ensure financial stability and sustainability in the long term.