Work

The Relationship Between Debt Levels and the Valuation of Suzano S.a.: a Study Based on Financial Performance Metrics

Year: 2026

Type: article

Abstract: This study analyzed the relationship between Suzano S.A.’s capital structure, valuation, and value creation between 2019 and 2024. A qualitative, descriptive, and documentary case study was conducted using data from financial statements, company reports, B3, and Economática. The following indicators were examined: debt ratios, foreign exchange exposure, ROE, ROIC, WACC, ROIC-WACC spread, EVA, enterprise value, and EV/EBITDA. The results showed that the relationship between leverage and value creation was not linear. In 2021 and 2022, operational recovery and a reduction in relative leverage were accompanied by ROIC exceeding WACC and positive EVA. In 2019, 2020, and 2024, economic value was destroyed. It was concluded that debt enabled investments and the company’s expansion, but its effects depended on the ability of the financed assets to generate returns exceeding the cost of capital.

Source: Artefactum

DOI: 10.23900/artefactum.v25i8.4113

Authors: Giulia Helena Gavazzi, Nilton Cezar Carraro

Institutions: Universidade Federal de São Carlos, Methodist University of Piracicaba

Language: English

Topic: Financial Reporting and Valuation Research

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: diamond

OpenAlex ID: W7212125353

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