Materion Corporation (MTRN)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 885,053 | 799,990 | 720,440 | 655,630 | 645,743 |
| Debt-to-capital ratio | 0.30 | 0.34 | 0.38 | 0.05 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $387,576K ÷ ($387,576K + $885,053K)
= 0.30
The debt-to-capital ratio of Materion Corp has demonstrated a downward trend from 2019 to 2023. In 2019, the ratio was at a low of 0.03, indicating a relatively low level of debt compared to the capital structure. From 2020 to 2023, the ratio increased gradually, reaching 0.33 in 2023.
This increase suggests that Materion Corp has taken on more debt relative to its capital over the years. Although the ratio has increased, it is still below 0.50, which generally implies that the company is not heavily reliant on debt financing. However, the upward trend in the ratio may indicate a growing leverage in the company's capital structure, which could increase financial risk and interest expenses in the future. Further analysis of the company's debt management strategies, profitability, and cash flow performance would provide a more comprehensive assessment of its financial health.