Minerals Technologies Inc (MTX)
Financial leverage ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,346,600 | 3,401,600 | 3,374,200 | 3,209,400 | 3,112,600 |
| Total stockholders’ equity | US$ in thousands | 1,652,000 | 1,579,500 | 1,539,300 | 1,460,800 | 1,402,700 |
| Financial leverage ratio | 2.03 | 2.15 | 2.19 | 2.20 | 2.22 |
December 31, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,346,600K ÷ $1,652,000K
= 2.03
The financial leverage ratio of Minerals Technologies, Inc. has exhibited a declining trend over the past five years, decreasing from 2.22 in 2019 to 2.03 in 2023. This indicates that the company's reliance on debt to finance its operations and assets has been gradually decreasing over the period under review. A lower financial leverage ratio suggests that the company has a relatively lower level of debt compared to its equity, which can be a positive sign for investors as it signifies lower financial risk and greater financial stability. The decreasing trend in the financial leverage ratio may indicate that the company has been paying down its debt or increasing its equity base, leading to a more conservative capital structure. Overall, the declining financial leverage ratio of Minerals Technologies, Inc. reflects a potentially healthier balance sheet and financial position.
Peer comparison
Dec 31, 2023