Materion Corporation (MTRN)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.22 | 0.24 | 0.27 | 0.03 | 0.00 |
| Debt-to-capital ratio | 0.30 | 0.34 | 0.38 | 0.05 | 0.00 |
| Debt-to-equity ratio | 0.44 | 0.51 | 0.60 | 0.06 | 0.00 |
| Financial leverage ratio | 1.99 | 2.12 | 2.23 | 1.61 | 1.39 |
Materion Corp's solvency ratios indicate the company's ability to meet its financial obligations and its level of financial risk.
1. Debt-to-assets ratio: This ratio has been relatively stable over the past five years, ranging from 0.02 in 2019 to 0.29 in 2021. A lower debt-to-assets ratio suggests lower financial risk as a smaller proportion of the company's assets are financed by debt.
2. Debt-to-capital ratio: The trend of this ratio has been increasing over the years, indicating a higher reliance on debt for financing the company's operations. The ratio increased from 0.03 in 2019 to 0.39 in 2021, suggesting a higher level of financial risk.
3. Debt-to-equity ratio: This ratio also shows an increasing trend, from 0.03 in 2019 to 0.65 in 2021. A higher debt-to-equity ratio indicates that a larger portion of the company's assets is financed by debt, resulting in higher financial leverage and risk.
4. Financial leverage ratio: The financial leverage ratio has also been increasing over the years, indicating higher usage of debt in the company's capital structure. A higher financial leverage ratio implies that the company has more debt in proportion to equity, which can magnify returns but also increase the financial risk.
Overall, Materion Corp's solvency ratios suggest a trend towards higher debt levels and financial leverage, which may increase the company's financial risk. It is important for investors and stakeholders to monitor these ratios closely to assess the company's ability to handle its debt obligations and manage its financial stability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | 3.88 | 5.02 | 12.27 | 1.67 | 26.43 |
Materion Corp's interest coverage ratio has exhibited fluctuations over the past five years. The ratio, which measures the company's ability to pay interest expenses from its operating income, stood at 4.47 in 2023, a decline from 5.52 in 2022. This decline may indicate a potential decrease in the company's ability to cover its interest obligations from its earnings.
Looking back further, Materion Corp's interest coverage ratio was significantly higher in 2021 at 15.94, implying a strong ability to meet its interest payments with operating income. However, there was a notable decrease in 2020 to 7.07 before reaching a peak of 52.66 in 2019, suggesting fluctuations in the company's financial performance and potentially its ability to service its debt.
Overall, Materion Corp's interest coverage ratio has shown variability over the years, indicating fluctuations in its ability to meet interest obligations. Investors and creditors may want to assess the company's financial health and stability by considering additional factors alongside the interest coverage ratio.