Minerals Technologies Inc (MTX)
Financial leverage ratio
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,393,900 | 3,394,000 | 3,346,000 | 3,339,100 | 3,346,600 | 3,344,700 | 3,408,200 | 3,450,700 | 3,399,100 | 3,387,300 | 3,403,100 | 3,425,800 | 3,374,200 | 3,384,300 | 3,253,300 | 3,213,200 | 3,209,400 | 3,214,100 | 3,056,900 | 3,069,100 |
| Total stockholders’ equity | US$ in thousands | 1,747,000 | 1,706,000 | 1,662,600 | 1,661,100 | 1,652,000 | 1,589,100 | 1,626,500 | 1,622,800 | 1,579,400 | 1,502,000 | 1,543,400 | 1,562,000 | 1,539,300 | 1,506,300 | 1,499,700 | 1,464,000 | 1,460,800 | 1,438,100 | 1,406,500 | 1,379,800 |
| Financial leverage ratio | 1.94 | 1.99 | 2.01 | 2.01 | 2.03 | 2.10 | 2.10 | 2.13 | 2.15 | 2.26 | 2.20 | 2.19 | 2.19 | 2.25 | 2.17 | 2.19 | 2.20 | 2.23 | 2.17 | 2.22 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,393,900K ÷ $1,747,000K
= 1.94
Minerals Technologies Inc's financial leverage ratio has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The financial leverage ratio started at 2.22 in March 2020 and generally decreased until reaching a low of 1.94 by December 31, 2024. This indicates a reduction in the company's reliance on debt to finance its operations and growth over the years.
A financial leverage ratio of less than 1 signifies that the company has more equity than debt in its capital structure. In this case, the decreasing trend in the financial leverage ratio implies that Minerals Technologies Inc is progressively becoming less leveraged, which may be regarded positively by investors and creditors as it reduces the company's financial risk and dependence on debt financing.
However, it is essential to consider the specific circumstances and industry norms when evaluating the implications of the financial leverage ratio. Additionally, further analysis of the company's overall financial health and performance is needed to provide a more comprehensive assessment of its capital structure and leverage position.
Peer comparison
Dec 31, 2024