Masco Corporation (MAS)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,363,000 | 1,292,000 | 1,240,000 | 898,000 | 1,637,000 |
| Interest expense | US$ in thousands | 99,000 | 106,000 | 108,000 | 278,000 | 144,000 |
| Interest coverage | 13.77 | 12.19 | 11.48 | 3.23 | 11.37 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,363,000K ÷ $99,000K
= 13.77
Masco Corporation's interest coverage ratio has shown fluctuations over the years based on the provided data. As of December 31, 2020, the interest coverage ratio was 11.37, indicating that the company earned 11.37 times more operating income than it needed to cover its interest expenses. However, there was a significant decline in the interest coverage ratio to 3.23 as of December 31, 2021, suggesting a weaker ability to meet interest obligations.
Subsequently, Masco Corporation's interest coverage ratio improved to 11.48 as of December 31, 2022, and further increased to 12.19 by December 31, 2023, demonstrating a stronger financial position and ability to cover interest expenses comfortably. The trend continued positively with a ratio of 13.77 as of December 31, 2024, indicating robust earnings relative to interest costs.
Overall, the fluctuating trend in Masco Corporation's interest coverage ratio reflects varying levels of financial stability and operational efficiency in managing interest payments over the years. It is essential for stakeholders to monitor this ratio to assess the company's ability to meet its debt obligations and its overall financial health.
Peer comparison
Dec 31, 2024