Matthews International Corporation (MATW)
Financial leverage ratio
| 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 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,834,890 | 1,861,880 | 1,890,480 | 1,903,120 | 1,887,380 | 1,884,190 | 1,897,270 | 1,902,940 | 1,882,770 | 1,904,690 | 1,952,790 | 2,053,320 | 2,032,080 | 2,075,050 | 2,063,760 | 2,087,450 | 2,072,630 | 2,084,620 | 2,191,740 | 2,284,580 |
| Total stockholders’ equity | US$ in thousands | 437,158 | 503,645 | 509,300 | 508,762 | 525,668 | 522,221 | 512,693 | 505,245 | 487,352 | 590,872 | 629,190 | 644,820 | 636,548 | 625,748 | 619,046 | 621,464 | 610,807 | 601,107 | 590,147 | 714,420 |
| Financial leverage ratio | 4.20 | 3.70 | 3.71 | 3.74 | 3.59 | 3.61 | 3.70 | 3.77 | 3.86 | 3.22 | 3.10 | 3.18 | 3.19 | 3.32 | 3.33 | 3.36 | 3.39 | 3.47 | 3.71 | 3.20 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,834,890K ÷ $437,158K
= 4.20
The financial leverage ratio of Matthews International Corporation has shown some fluctuations over the past several quarters, ranging from 3.10 to 4.20. The ratio measures the extent to which the company relies on debt financing compared to equity financing. A higher ratio indicates a higher level of debt relative to equity, suggesting increased financial risk.
In the most recent quarter, the financial leverage ratio stood at 4.20, which is on the higher side compared to previous quarters. This indicates that the company may be relying more on debt to finance its operations, potentially increasing its financial risk and interest expense burden.
It is essential for investors and stakeholders to monitor changes in the financial leverage ratio over time to assess the company's ability to meet its debt obligations and manage financial risk effectively. Fluctuations in the ratio could be a signal of changing financial health and leverage strategy within the company.