Materion Corporation (MTRN)
Financial leverage ratio
| Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,762,730 | 1,748,600 | 1,737,710 | 1,717,980 | 1,691,980 | 1,702,320 | 1,703,110 | 1,666,910 | 1,607,480 | 1,182,660 | 1,141,500 | 1,098,270 | 1,057,860 | 1,084,810 | 1,041,220 | 846,076 | 898,430 | 839,839 | 836,846 | 824,762 |
| Total stockholders’ equity | US$ in thousands | 885,053 | 871,968 | 847,123 | 821,994 | 799,990 | 766,677 | 749,154 | 730,964 | 720,440 | 697,428 | 681,701 | 661,336 | 655,630 | 644,172 | 638,356 | 630,769 | 645,743 | 597,796 | 594,785 | 566,877 |
| Financial leverage ratio | 1.99 | 2.01 | 2.05 | 2.09 | 2.12 | 2.22 | 2.27 | 2.28 | 2.23 | 1.70 | 1.67 | 1.66 | 1.61 | 1.68 | 1.63 | 1.34 | 1.39 | 1.40 | 1.41 | 1.45 |
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 been relatively stable over the past eight quarters, averaging around 2.1. A financial leverage ratio above 1 indicates that the company is relying more on debt to finance its operations than on equity.
The decreasing trend in the financial leverage ratio from Q4 2022 to Q1 2023 suggests that Materion Corp has been reducing its dependence on debt financing during that period. However, the ratio started to increase again in subsequent quarters, reaching 2.09 in Q1 2023 and 2.12 in Q4 2022.
The variations in the financial leverage ratio may indicate shifts in the company's capital structure and its ability to repay debt obligations. It is important for Materion Corp to carefully manage its debt levels to maintain a sustainable financial position and to avoid potential liquidity or solvency issues in the future.