Metallus Inc (MTUS)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,175,300 | 1,082,000 | 1,158,900 | 994,000 | 1,085,200 |
| Total stockholders’ equity | US$ in thousands | 731,600 | 686,500 | 664,600 | 507,500 | 563,100 |
| Financial leverage ratio | 1.61 | 1.58 | 1.74 | 1.96 | 1.93 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,175,300K ÷ $731,600K
= 1.61
The financial leverage ratio of Metallus Inc has shown some fluctuations over the past five years, ranging from 1.58 to 1.96. This ratio indicates the extent to which the company is using debt to finance its operations and investments. A higher ratio suggests higher financial leverage, implying that the company relies more on debt financing compared to equity.
In the case of Metallus Inc, the trend shows a decreasing pattern from 1.96 in 2020 to 1.61 in 2023. This may indicate that the company has been gradually reducing its reliance on debt for funding its activities. A lower financial leverage ratio can be considered favorable as it implies a lower financial risk and less dependence on external financing sources.
However, it is important to note that a very low financial leverage ratio could also indicate underutilization of debt for potential growth opportunities. As such, the management of Metallus Inc should carefully balance the use of debt to optimize the capital structure and achieve sustainable growth while managing financial risks effectively.
Peer comparison
Dec 31, 2023