Mercer International Inc (MERC)
Financial leverage ratio
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 2,662,580 | 2,655,000 | 2,633,370 | 2,740,480 | 2,725,040 | 2,543,980 | 2,415,720 | 2,456,940 | 2,351,230 | 2,231,750 | 2,214,700 | 2,178,270 | 2,129,130 | 2,044,740 | 1,973,610 | 1,951,990 | 2,065,720 | 1,949,650 | 2,029,780 | 2,013,400 |
| Total stockholders’ equity | US$ in thousands | 635,410 | 665,452 | 733,469 | 822,873 | 838,784 | 720,349 | 752,122 | 768,334 | 694,024 | 627,836 | 604,134 | 567,638 | 601,027 | 550,707 | 494,260 | 462,768 | 550,403 | 591,387 | 646,525 | 620,682 |
| Financial leverage ratio | 4.19 | 3.99 | 3.59 | 3.33 | 3.25 | 3.53 | 3.21 | 3.20 | 3.39 | 3.55 | 3.67 | 3.84 | 3.54 | 3.71 | 3.99 | 4.22 | 3.75 | 3.30 | 3.14 | 3.24 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,662,580K ÷ $635,410K
= 4.19
The financial leverage ratio for Mercer International Inc. has shown fluctuations over the past eight quarters, ranging from 3.20 to 4.19. The ratio indicates how much of the company's assets are financed through debt.
The trend in the financial leverage ratio shows an increase in leverage over the last two quarters of 2023 compared to the first two quarters of the same year. This suggests that Mercer International Inc. has been relying more on debt financing to support its operations during that period.
Comparing the latest ratio of 4.19 to the ratios from the previous quarters, it is evident that the company's level of financial leverage is currently at its highest point in the given timeframe. This may indicate increased risk as higher leverage can amplify both positive and negative financial outcomes for the company.
It is important for stakeholders to monitor Mercer International Inc.'s financial leverage ratio closely to assess its ability to meet its debt obligations and manage financial risk effectively.