Minerals Technologies Inc (MTX)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 911,100 | 928,100 | 936,200 | 933,200 | 824,300 |
| Total stockholders’ equity | US$ in thousands | 1,652,000 | 1,579,500 | 1,539,300 | 1,460,800 | 1,402,700 |
| Debt-to-capital ratio | 0.36 | 0.37 | 0.38 | 0.39 | 0.37 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $911,100K ÷ ($911,100K + $1,652,000K)
= 0.36
The debt-to-capital ratio for Minerals Technologies, Inc. has shown a slight fluctuation over the past five years, ranging from 0.38 to 0.40. This ratio measures the proportion of the company's capital structure that is financed by debt. A decreasing trend in the ratio may indicate a lower reliance on debt financing, while an increasing trend may suggest higher leverage.
Despite minor fluctuations, the debt-to-capital ratio has remained relatively stable around the 0.40 mark over the period. This suggests that Minerals Technologies has maintained a consistent balance between debt and equity in its capital structure. It is crucial for the company to carefully manage its debt levels to ensure financial stability and reduce the risk of financial distress.
Overall, the trend in the debt-to-capital ratio for Minerals Technologies, Inc. indicates a prudent approach to debt management, with a balanced mix of debt and equity to support its operations and growth initiatives.
Peer comparison
Dec 31, 2023