Mettler-Toledo International Inc (MTD)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	3,355,560	3,492,400	3,326,800	2,814,550	2,789,320
Total stockholders’ equity	US$ in thousands	-149,938	24,793	171,421	282,675	420,780
Financial leverage ratio		—	140.86	19.41	9.96	6.63

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,355,560K ÷ $-149,938K
= —

The financial leverage ratio for Mettler-Toledo International, Inc. has shown an increasing trend over the past five years, indicating a higher level of financial leverage. In 2019, the ratio stood at 6.63, signaling that the company's reliance on debt was moderate. However, this ratio increased significantly to 9.96 in 2020, further to 19.41 in 2021, and notably spiked to 140.86 in 2022. The absence of data for 2023 poses a limitation in the analysis for the most recent year.

The substantial surge in the financial leverage ratio from 2020 to 2022 suggests that Mettler-Toledo International, Inc. significantly increased its reliance on debt to finance its operations and investments. Such a high level of financial leverage can heighten the company's financial risk and vulnerability to economic downturns or interest rate fluctuations.

It is crucial for investors and stakeholders to closely monitor the financial leverage ratio of Mettler-Toledo International, Inc. to assess the company's debt management practices and potential risk exposure. Additional contextual information and analysis of the company's financial statements would be necessary to fully evaluate the implications of the observed trend in its financial leverage ratio.