Myers Industries Inc (MYE)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	541,631	531,121	542,710	556,197	542,634	549,724	554,012	517,245	484,549	494,793	430,475	420,281	400,015	366,383	354,845	348,867	353,139	357,286	352,996	345,788
Total stockholders’ equity	US$ in thousands	292,800	282,221	274,422	265,247	256,427	244,977	237,258	224,138	209,325	205,525	201,981	194,253	189,100	187,598	181,695	176,223	166,682	163,820	162,410	158,426
Financial leverage ratio		1.85	1.88	1.98	2.10	2.12	2.24	2.34	2.31	2.31	2.41	2.13	2.16	2.12	1.95	1.95	1.98	2.12	2.18	2.17	2.18

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 a declining trend from Q4 2022 to Q1 2023, decreasing from 2.12 to 2.10 to 1.98 to 1.88, down to 1.85 in Q4 2023. This indicates that the company has been reducing its reliance on debt to finance its operations over the past year.

A financial leverage ratio above 1 typically indicates that a company has more debt than equity in its capital structure. Thus, a higher ratio implies higher financial risk due to increased debt obligations, which could affect the company's ability to meet its financial obligations in the long term.

The decreasing trend in the financial leverage ratio of Myers Industries Inc. suggests a positive development, as the company is gradually reducing its financial risk by relying less on debt financing. However, it is important to monitor this ratio over time to ensure that the company maintains a healthy balance between debt and equity in its capital structure to support its long-term sustainability and growth.