Matson Inc (MATX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 4,294,600 | 4,330,000 | 3,693,100 | 2,900,600 | 2,845,400 |
| Total stockholders’ equity | US$ in thousands | 2,400,700 | 2,296,900 | 1,667,400 | 961,200 | 805,700 |
| Financial leverage ratio | 1.79 | 1.89 | 2.21 | 3.02 | 3.53 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,294,600K ÷ $2,400,700K
= 1.79
The financial leverage ratio for Matson Inc has shown a declining trend over the past five years, decreasing from 3.53 in 2019 to 1.79 in 2023. This indicates a decrease in the company's reliance on debt to finance its operations and investments. A lower financial leverage ratio suggests that the company has been able to reduce its debt levels relative to its equity, which can be viewed positively as it potentially lowers financial risk and improves financial stability. It is important to note that a decreasing trend in the financial leverage ratio could also signal improved financial health and efficiency in capital structure management for Matson Inc.
Peer comparison
Dec 31, 2023