Materion Corporation (MTRN)

Solvency ratios

	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
Debt-to-assets ratio	0.22	0.24	0.24	0.24	0.24	0.28	0.28	0.29	0.27	0.07	0.05	0.05	0.03	0.01	0.00	0.00	0.00	0.00	0.00	0.00
Debt-to-capital ratio	0.30	0.33	0.33	0.33	0.34	0.38	0.39	0.40	0.38	0.10	0.08	0.07	0.05	0.01	0.00	0.00	0.00	0.00	0.00	0.00
Debt-to-equity ratio	0.44	0.49	0.49	0.49	0.51	0.62	0.64	0.66	0.60	0.11	0.09	0.08	0.06	0.01	0.00	0.00	0.00	0.00	0.00	0.00
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

Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. Looking at Materion Corp's solvency ratios over the past eight quarters, we can observe certain trends and fluctuations.

1. Debt-to-assets ratio: This ratio indicates the proportion of a company's assets that are financed through debt. Materion Corp's debt-to-assets ratio has been relatively stable around 0.26 to 0.30 over the past two years. This stability suggests that Materion has managed its debt levels effectively in relation to its total assets.

2. Debt-to-capital ratio: The debt-to-capital ratio reveals the proportion of a company's capital that comes from debt financing. Materion Corp's debt-to-capital ratio has ranged from 0.33 to 0.41 during the period under review. The slight fluctuations in this ratio suggest that Materion has maintained a moderate level of debt relative to its total capital structure.

3. Debt-to-equity ratio: This ratio compares a company's total debt to its total equity and signifies the extent to which a company relies on debt to fund its operations. Materion Corp's debt-to-equity ratio has varied between 0.50 and 0.70 over the past eight quarters, indicating some degree of reliance on debt financing. It is worth noting the increasing trend in this ratio, which may suggest a higher level of financial leverage in recent quarters.

4. Financial leverage ratio: The financial leverage ratio measures the amount of debt used in a company's capital structure. Materion Corp's financial leverage ratio has been between 1.99 and 2.28, indicating that the company has utilized leverage to support its operations. The increasing trend in this ratio over the period may raise concerns about the company's increasing reliance on debt to finance its activities.

In summary, Materion Corp's solvency ratios reflect a stable debt-to-assets ratio, while the debt-to-capital, debt-to-equity, and financial leverage ratios have shown some fluctuations and an overall increasing trend. These trends suggest that Materion has a moderate level of debt in its capital structure but may be moving towards higher leverage in recent periods. Investors and analysts should continue to monitor these solvency ratios to assess Materion's ability to meet its long-term financial obligations.

Coverage ratios

	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
Interest coverage	3.95	4.64	4.69	5.08	5.17	5.49	7.00	8.72	12.88	15.88	10.01	6.77	2.26	4.95	8.54	16.74	25.13	29.03	31.15	26.36

Materion Corp's interest coverage ratio has displayed a consistent downward trend over the past eight quarters, indicating a declining ability to meet its interest obligations from its operating profits. The ratio started at a robust 9.91 in Q1 2022 but has steadily decreased to 4.47 in Q4 2023. This downward trend suggests that the company may be facing challenges in generating sufficient operating income to cover its interest expenses. A declining interest coverage ratio could signal financial distress or increased risk for Materion Corp, warranting further investigation into the company's financial health and potential causes for the decrease in coverage.