Materion Corporation (MTRN)
Debt-to-equity ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 407,734 | 387,576 | 410,876 | 434,388 | 36,542 |
| Total stockholders’ equity | US$ in thousands | 868,881 | 885,053 | 799,990 | 720,440 | 655,630 |
| Debt-to-equity ratio | 0.47 | 0.44 | 0.51 | 0.60 | 0.06 |
December 31, 2024 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $407,734K ÷ $868,881K
= 0.47
The debt-to-equity ratio of Materion Corporation has experienced a notable increase over the years, from 0.06 as of December 31, 2020, to 0.60 by the end of 2021. This significant rise suggests that the company has taken on more debt in relation to its equity during this period. However, there was a slight decrease in the ratio in the subsequent years, reaching 0.51 as of December 31, 2022, 0.44 by December 31, 2023, and 0.47 by December 31, 2024.
Overall, the trend indicates a fluctuation in the debt-to-equity ratio of Materion Corporation, with a sharp increase followed by some moderation. A higher debt-to-equity ratio may imply increased financial risk, as the company relies more on debt financing compared to equity. Management should continue monitoring and managing the debt structure to maintain a balanced capital structure in line with the company's financial objectives and risk tolerance.