Sylvamo (Sylvamo) Interest Coverage : 12.17 (As of Dec. 2023)

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What is Sylvamo Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Sylvamo's Operating Income for the three months ended in Dec. 2023 was $73 Mil. Sylvamo's Interest Expense for the three months ended in Dec. 2023 was $-6 Mil. Sylvamo's interest coverage for the quarter that ended in Dec. 2023 was 12.17. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Sylvamo's Interest Coverage or its related term are showing as below:

SLVM' s Interest Coverage Range Over the Past 10 Years
Min: 6.72 Med: 16.65 Max: No Debt
Current: 11.85

SLVM's Interest Coverage is ranked better than
65.84% of 202 companies
in the Forest Products industry
Industry Median: 6.115 vs SLVM: 11.85

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sylvamo Interest Coverage Historical Data

The historical data trend for Sylvamo's Interest Coverage 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.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Sylvamo Interest Coverage Chart

Sylvamo Annual Data

Trend

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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124.75

22.75

10.55

6.96

6.72

Sylvamo Quarterly Data
	Dec18	Dec19	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage	Get a 7-Day Free Trial												8.18	21.14	6.83	11.11	12.17

Competitive Comparison of Sylvamo's Interest Coverage

For the Paper & Paper Products subindustry, Sylvamo's Interest Coverage, along with its competitors' market caps and Interest Coverage 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.

Sylvamo's Interest Coverage Distribution in the Forest Products Industry

For the Forest Products industry and Basic Materials sector, Sylvamo's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sylvamo's Interest Coverage falls into.

Sylvamo Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sylvamo's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Sylvamo's Interest Expense was $-60 Mil. Its Operating Income was $403 Mil. And its Long-Term Debt & Capital Lease Obligation was $931 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	403	/	-60
	=	6.72

Sylvamo's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Sylvamo's Interest Expense was $-6 Mil. Its Operating Income was $73 Mil. And its Long-Term Debt & Capital Lease Obligation was $931 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	73	/	-6
	=	12.17

The higher the ratio, the stronger the company's Financial Strength is.

Sylvamo (NYSE:SLVM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Sylvamo Interest Coverage Related Terms

Thank you for viewing the detailed overview of Sylvamo's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Sylvamo (Sylvamo) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Basic Materials » Forest Products » Sylvamo Corp (NYSE:SLVM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

88L:Germany

Address

6077 Primacy Parkway, Memphis, TN, USA, 38119

Website

https://www.sylvamo.com

Sylvamo Corp is an uncoated papers company with a broad portfolio of top-tier brands and low-cost, large-scale paper mills, it produces uncoated freesheet (UFS) for paper products such as cut size and offset paper, as well as market pulp. The company offers Copy and Printer papers, Commercial Printing papers, Converting papers, and Specialty papers. It operates in three geographical segments: Europe, Latin America, and North America.

Executives

Hirschfeld Tatiana Kalman	officer: SVP & GM, Latin America	C/O SYLVAMO CORPORATION, 6077 PRIMACY PARKWAY, MEMPHIS TN 38119
John V Sims	director, officer: SVP & Chief Financial Officer	C/O INTERNATIONAL PAPER COMPANY, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Karl L Meyers	director	C/O SYLVAMO CORPORATION, 6077 PRIMACY PARKWAY, MEMPHIS TN 38119
Kevin W Ferguson	officer: VP, Controller,Chief Acct.Off.	C/O SYLVAMO CORPORATION, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Thomas A Cleves	officer: SVP, Corporate Affairs	C/O SYLVAMO CORPORATION, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Mark Wilde	director	C/O SYLVAMO CORPORATION, 6077 PRIMACY PARKWAY, MEMPHIS TN 38119
Citigroup Inc	10 percent owner	388 GREENWICH STREET, NEW YORK NY 10013
International Paper Co /new/	10 percent owner	6400 POPLAR AVENUE, MEMPHIS TN 38197
Matthew Barron	officer: SVP, Gen Counsel & Secretary	C/O SYLVAMO CORPORATION, 6400 POPLAR AVENUE, MEMPHIS TN 38197
Atlas Capital Resources Gp Iv Llc	10 percent owner	100 NORTHFIELD STREET, GREENWICH CT 06830
Atlas Capital Gp Iv Lp	10 percent owner	100 NORTHFIELD STREET, GREENWICH CT 06830
Acr Group Paper Holdings Lp	10 percent owner	100 NORTHFIELD STREET, GREENWICH CT 06830
Andrew M Bursky	10 percent owner
Timothy J Fazio	10 percent owner	ATLAS HOLDINGS LLC, 100 NORTHFIELD STREET, GREENWICH CT 06830
Acr Group Paper Holdings Jr Gp Llc	10 percent owner	100 NORTHFIELD STREET, GREENWICH CT 06830