Masco Corporation (MAS)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,292,000 | 1,219,000 | 1,182,000 | 1,204,000 | 1,240,000 | 1,275,000 | 1,300,000 | 892,000 | 898,000 | 985,000 | 1,038,000 | 1,378,000 | 1,637,000 | 1,883,000 | 1,712,000 | 1,732,000 | 1,324,000 | 1,048,000 | 1,102,000 | 1,078,000 |
| Interest expense (ttm) | US$ in thousands | 106,000 | 108,000 | 111,000 | 111,000 | 108,000 | 107,000 | 104,000 | 101,000 | 278,000 | 287,000 | 301,000 | 311,000 | 144,000 | 150,000 | 149,000 | 155,000 | 159,000 | 158,000 | 157,000 | 154,000 |
| Interest coverage | 12.19 | 11.29 | 10.65 | 10.85 | 11.48 | 11.92 | 12.50 | 8.83 | 3.23 | 3.43 | 3.45 | 4.43 | 11.37 | 12.55 | 11.49 | 11.17 | 8.33 | 6.63 | 7.02 | 7.00 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,292,000K ÷ $106,000K
= 12.19
Masco Corp.'s interest coverage ratio has been relatively stable over the past eight quarters, ranging from 11.48 to 14.33. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income. A higher ratio indicates better financial health and lower risk of default on interest payments.
The consistently high interest coverage ratios of Masco Corp. reflect its strong ability to generate earnings to cover its interest expenses comfortably. This signals that the company is likely managing its debt obligations effectively and has a solid operating performance.
Overall, Masco Corp.'s interest coverage ratios demonstrate a consistent and healthy financial position, which indicates the company's ability to service its debt through its operating income effectively.
Peer comparison
Dec 31, 2023