Myers Industries Inc (MYE)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	541,631	542,634	484,549	400,015	353,139
Total stockholders’ equity	US$ in thousands	292,800	256,427	209,325	189,100	166,682
Financial leverage ratio		1.85	2.12	2.31	2.12	2.12

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $541,631K ÷ $292,800K
= 1.85

The financial leverage ratio of Myers Industries Inc. has shown some fluctuations over the past five years. The ratio decreased from 2.12 in 2019 and 2020 to 1.85 in 2023, indicating a reduction in the company's financial leverage. A lower financial leverage ratio suggests that the company is relying less on debt financing and is more reliant on equity to fund its operations. This could indicate a more conservative financial approach by the company.

However, it is important to note that the ratio increased in 2021 to 2.31 before decreasing again in 2022. This fluctuation could indicate some variability in the company's capital structure over the years.

Overall, the downward trend in the financial leverage ratio from 2020 to 2023 suggests that Myers Industries Inc. has been managing its debt levels more prudently, which can be viewed positively by investors and stakeholders concerned about the company's financial risk.