Masco Corporation (MAS)

Based on the solvency ratios provided for Masco Corporation, we can observe the following trends:

1. Debt-to-assets ratio:
- The debt-to-assets ratio has been gradually increasing from 0.48 in December 2020 to 0.59 by December 2024. This indicates that Masco Corporation's proportion of debt relative to its total assets has been on the rise over the years. A higher ratio suggests that a larger portion of the company's assets is financed by debt.

2. Debt-to-capital ratio:
- Similarly, the debt-to-capital ratio has also shown an increasing trend, going from 0.93 in December 2020 to 1.10 by December 2024. This ratio reflects the company's reliance on debt to finance its operations and investments relative to its total capital, which includes both debt and equity.

3. Debt-to-equity ratio:
- The debt-to-equity ratio is not available for the years 2021 through 2024. However, the data for December 2020 shows a debt-to-equity ratio of 14.32. This ratio is used to evaluate the company's financial leverage and risk exposure, with a higher ratio indicating higher financial risk due to higher debt levels relative to equity.

4. Financial leverage ratio:
- The financial leverage ratio data is missing for the years 2021 through 2024. However, for December 2020, the financial leverage ratio is reported as 29.63. This ratio measures the extent to which a company utilizes debt to finance its operations, with a higher ratio suggesting higher financial leverage and risk.

In summary, the increasing trends in the debt-to-assets and debt-to-capital ratios indicate a growing reliance on debt financing by Masco Corporation over the analyzed period. The absence of data for the debt-to-equity and financial leverage ratios for the later years limits a comprehensive assessment of the company's solvency position. Further analysis and additional data would be necessary to fully evaluate Masco Corporation's overall solvency and financial risk profile.

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Coverage ratios

The interest coverage ratio indicates the ability of Masco Corporation to meet its interest payments on outstanding debt. A higher ratio is generally preferred as it signifies a stronger ability to cover interest expenses with operating income.

The interest coverage ratio for Masco Corporation has shown fluctuations over the years:
- In December 31, 2020, the interest coverage ratio was 11.37, indicating a comfortable cushion to meet interest obligations.
- By December 31, 2021, the ratio dropped to 3.23, suggesting a significant decrease in the company's ability to cover interest payments with its operating income.
- However, the ratio improved in subsequent years, reaching 11.48 on December 31, 2022, 12.19 on December 31, 2023, and 13.77 on December 31, 2024. This trend indicates a recovery in Masco Corporation's ability to service its interest expenses efficiently.

Overall, although there was a temporary dip in 2021, Masco Corporation has managed to strengthen its interest coverage ratio, demonstrating an improved capacity to fulfill its debt obligations with its earnings in the following years. This positive trend is a favorable indicator of the company's financial health and ability to manage its debt effectively.