Materion Corporation (MTRN)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,697,630 | 1,762,730 | 1,691,980 | 1,607,480 | 1,057,860 |
| Total stockholders’ equity | US$ in thousands | 868,881 | 885,053 | 799,990 | 720,440 | 655,630 |
| Financial leverage ratio | 1.95 | 1.99 | 2.12 | 2.23 | 1.61 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,697,630K ÷ $868,881K
= 1.95
The financial leverage ratio for Materion Corporation has shown fluctuations over the period from December 31, 2020, to December 31, 2024. The ratio increased from 1.61 in 2020 to 2.23 in 2021, indicating a higher level of financial leverage. However, in the subsequent years, the ratio has declined to 2.12 in 2022, 1.99 in 2023, and further to 1.95 in 2024.
These changes suggest that Materion Corporation initially increased its reliance on debt to finance its operations, as evidenced by the higher ratio in 2021. However, the company then managed to reduce its financial leverage in the following years, potentially by decreasing its debt levels or increasing its equity base.
Overall, the decreasing trend in the financial leverage ratio after 2021 indicates that Materion Corporation has been gradually reducing its debt relative to its equity, which could lead to improved financial stability and lower financial risk in the long term.