Mettler-Toledo International Inc (MTD)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	1,888,620	1,908,480	1,580,810	1,284,170	1,235,350
Total assets	US$ in thousands	3,355,560	3,492,400	3,326,800	2,814,550	2,789,320
Debt-to-assets ratio		0.56	0.55	0.48	0.46	0.44

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,888,620K ÷ $3,355,560K
= 0.56

The debt-to-assets ratio of Mettler-Toledo International, Inc. has shown a consistent upward trend over the five-year period from 2019 to 2023. This ratio indicates the proportion of the company's assets that are financed through debt.

In 2019, the ratio was 0.46, meaning that 46% of the company's assets were funded by debt. Over the subsequent years, the ratio increased steadily to reach 0.62 in 2023, indicating that 62% of the company's assets were financed by debt at the end of the period.

The increasing trend in the debt-to-assets ratio suggests that Mettler-Toledo International, Inc. has been relying more on debt to finance its assets over time. While a higher ratio may indicate higher financial risk due to increased leverage, it can also signify a strategic decision to take advantage of debt financing for growth opportunities or other reasons.

Overall, a detailed analysis of the trend in the debt-to-assets ratio for Mettler-Toledo International, Inc. highlights a gradual shift towards greater reliance on debt to support the company's asset base, necessitating a careful assessment of the company's overall financial health and leverage levels.