MasterBrand Inc. (MBC)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | ||
|---|---|---|---|---|
| Total assets | US$ in thousands | 2,381,700 | 2,378,300 | 2,424,000 |
| Total stockholders’ equity | US$ in thousands | 1,193,800 | 1,156,500 | 1,107,600 |
| Financial leverage ratio | 2.00 | 2.06 | 2.19 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,381,700K ÷ $1,193,800K
= 2.00
The financial leverage ratio of MasterBrand Inc. has exhibited a downward trend over the past three quarters, decreasing from 2.19 in June 30, 2023, to 2.06 in September 30, 2023, and further dropping to 2.00 by December 31, 2023. This indicates a gradual reduction in the company's reliance on debt to finance its operations and investments, reflecting a potentially improving financial position and lower risk of financial distress. A lower financial leverage ratio signifies a lesser proportion of debt in the company's capital structure relative to equity, which may suggest better solvency and financial stability. However, further analysis of the company's overall debt levels and profitability metrics would be beneficial to gain a more comprehensive understanding of its financial health and leverage position.
Peer comparison
Dec 31, 2023