MasterBrand Inc. (MBC)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,929,800 | 2,960,200 | 2,427,100 | 2,400,100 |
| Total stockholders’ equity | US$ in thousands | 1,294,700 | 1,287,600 | 1,259,100 | 1,229,000 |
| Financial leverage ratio | 2.26 | 2.30 | 1.93 | 1.95 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,929,800K ÷ $1,294,700K
= 2.26
The financial leverage ratio for MasterBrand Inc. has shown fluctuations over the four quarters of 2024. The ratio stood at 1.95 as of March 31, 2024, indicating that the company had a higher proportion of debt relative to equity. The ratio slightly decreased to 1.93 by June 30, 2024, suggesting a slight improvement in the company's leverage position.
However, the financial leverage ratio increased notably to 2.30 by September 30, 2024, and then decreased to 2.26 by December 31, 2024. These changes indicate that MasterBrand Inc. has been adjusting its capital structure throughout the year, possibly taking on more debt in some periods or generating more equity in others.
Overall, a financial leverage ratio above 1 indicates that the company is using more debt financing than equity, which can amplify returns but also increase financial risk. It is essential for MasterBrand Inc. to carefully manage its leverage to maintain a healthy balance between debt and equity to support sustainable growth and financial stability.
Peer comparison
Dec 31, 2024