Materion Corporation (MTRN)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,762,730 | 1,691,980 | 1,607,480 | 1,057,860 | 898,430 |
| Total stockholders’ equity | US$ in thousands | 885,053 | 799,990 | 720,440 | 655,630 | 645,743 |
| Financial leverage ratio | 1.99 | 2.12 | 2.23 | 1.61 | 1.39 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,762,730K ÷ $885,053K
= 1.99
The financial leverage ratio of Materion Corp has shown fluctuations over the past five years. The ratio was highest in 2021 at 2.23, indicating a higher degree of financial leverage during that period. This was followed by a decrease in the ratio in 2022 and 2023, reflecting a reduction in the company's reliance on debt to finance its assets.
In 2020 and 2019, the financial leverage ratios were lower at 1.61 and 1.40, respectively, suggesting a comparatively lower level of debt usage in those years. It is important to note that a higher financial leverage ratio indicates a greater reliance on debt financing, which can amplify both returns and risks for the company.
The fluctuations in Materion Corp's financial leverage ratio over the years may indicate changes in the company's capital structure and financial risk profile. Further analysis of the underlying factors driving these changes would provide a more comprehensive understanding of Materion Corp's financial leverage position.