Metallus, Inc (MTUS)
Financial leverage ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 1,116,700 | 1,175,300 | 1,082,000 | 1,158,900 | 994,000 |
| Total stockholders’ equity | US$ in thousands | 690,500 | 731,600 | 686,500 | 664,600 | 507,500 |
| Financial leverage ratio | 1.62 | 1.61 | 1.58 | 1.74 | 1.96 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,116,700K ÷ $690,500K
= 1.62
The financial leverage ratio of Metallus, Inc has exhibited a declining trend over the past five years. Starting at 1.96 on December 31, 2020, the ratio decreased to 1.74 by December 31, 2021, further dropping to 1.58 by December 31, 2022. However, there was a slight increase to 1.61 by December 31, 2023, followed by a marginal rise to 1.62 by December 31, 2024.
A financial leverage ratio below 2 generally indicates that the company relies more on equity financing rather than debt financing to fund its operations and growth. The decreasing trend in the ratio suggests that Metallus, Inc has been reducing its reliance on debt over the years, which could be seen as a positive sign in terms of financial risk management and sustainability. However, it is important to consider the specific circumstances and strategic decisions of the company in conjunction with this ratio to gain a comprehensive understanding of its financial leverage position.
Peer comparison
Dec 31, 2024