Materion Corporation (MTRN)
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 | 387,576 | 410,876 | 434,388 | 36,542 | 1,260 |
| Total assets | US$ in thousands | 1,762,730 | 1,691,980 | 1,607,480 | 1,057,860 | 898,430 |
| Debt-to-assets ratio | 0.22 | 0.24 | 0.27 | 0.03 | 0.00 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $387,576K ÷ $1,762,730K
= 0.22
The debt-to-assets ratio for Materion Corp has shown some fluctuations over the past five years. In 2023, the ratio stood at 0.25, indicating that 25% of the company's assets were financed by debt. This represents a slight decrease from the previous year when the ratio was 0.26.
Comparing the current ratio to earlier years, we can see a notable decrease from 0.29 in 2021 to 0.06 in 2020, and a significant increase from 0.02 in 2019.
The decreasing trend from 2021 to 2023 suggests that Materion Corp has been reducing its reliance on debt to finance its operations, potentially indicating a strengthening financial position and lower financial risk.
However, it is important to note that the optimal debt-to-assets ratio varies by industry, and a lower ratio does not always indicate a stronger financial position as some industries rely more heavily on debt financing. Therefore, further analysis and comparison with industry benchmarks would be necessary to fully evaluate Materion Corp's debt management strategy.