Sappi (JSE:SAP) Debt-to-Equity : 0.77 (As of Dec. 2023)

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What is Sappi Debt-to-Equity?

Sappi's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was R6,484 Mil. Sappi's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was R26,105 Mil. Sappi's Total Stockholders Equity for the quarter that ended in Dec. 2023 was R42,129 Mil. Sappi's debt to equity for the quarter that ended in Dec. 2023 was 0.77.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Sappi's Debt-to-Equity or its related term are showing as below:

JSE:SAP' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.68 Med: 1.17 Max: 2.37
Current: 0.77

During the past 13 years, the highest Debt-to-Equity Ratio of Sappi was 2.37. The lowest was 0.68. And the median was 1.17.

JSE:SAP's Debt-to-Equity is ranked worse than
66.04% of 265 companies
in the Forest Products industry
Industry Median: 0.51 vs JSE:SAP: 0.77

Sappi Debt-to-Equity Historical Data

The historical data trend for Sappi's Debt-to-Equity can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Sappi Debt-to-Equity Chart

Sappi Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Debt-to-Equity

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0.97

1.37

1.17

0.82

0.69

Sappi Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Debt-to-Equity	Get a 7-Day Free Trial															0.72	0.70	0.68	0.69	0.77

Competitive Comparison of Sappi's Debt-to-Equity

For the Paper & Paper Products subindustry, Sappi's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Sappi's Debt-to-Equity Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Sappi's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Sappi's Debt-to-Equity falls into.

Sappi Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Sappi's Debt to Equity Ratio for the fiscal year that ended in Sep. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(5613.847	+	26362.323)	/	46371.137
	=	0.69

Sappi's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

Debt to Equity	=	Total Debt			/	Total Stockholders Equity
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Total Stockholders Equity
	=	(6484.214	+	26104.553)	/	42128.761
	=	0.77

Sappi (JSE:SAP) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.

Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.

Sappi Debt-to-Equity Related Terms

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Sappi (JSE:SAP) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Sappi Ltd (JSE:SAP) » Definitions » Debt-to-Equity

Comparable Companies

Traded in Other Exchanges

SPPJY:USA SPI:Germany

Address

108 Oxford Road, Rosebank, Houghton Estate, Johannesburg, GT, ZAF, 2198

Website

https://www.sappi.com

Sappi Ltd produces and sells a variety of paper and paper-related products. The products and services include Dissolving pulp, Graphic papers, Packaging and speciality papers, Casting and release papers, Biomaterials and Bio-energy. The company organizes itself into three primary segments based on geography: North America, Europe, and Southern Africa. More of the revenue comes from Europe than any other geography.