Masco Corporation (MAS)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,344,000 | 1,301,000 | 1,305,000 | 1,295,000 | 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 |
| Interest expense (ttm) | US$ in thousands | 100,000 | 100,000 | 101,000 | 103,000 | 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 |
| Interest coverage | 13.44 | 13.01 | 12.92 | 12.57 | 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 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,344,000K ÷ $100,000K
= 13.44
Masco Corporation's interest coverage has displayed some fluctuations over the years. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
From March 2020 to December 2022, Masco Corporation maintained a relatively healthy interest coverage ratio ranging between 11.17 and 12.55, indicating a strong capacity to cover its interest expenses. However, there was a notable decline in the interest coverage ratio in the subsequent quarters, dropping to as low as 3.23 by December 2021. This significant decrease may raise concerns about the company's ability to comfortably meet its interest payments from its operating earnings.
Subsequently, Masco Corporation showed improvements in its interest coverage ratio, with an upward trend from March 2022 to December 2024, reaching levels above 12. This recovery suggests that the company's ability to cover its interest expenses has strengthened.
Overall, Masco Corporation's interest coverage ratio experienced fluctuations but generally exhibited a positive trajectory, demonstrating an increase in the ability to cover interest payments from operating income towards the end of the analyzed period.
Peer comparison
Dec 31, 2024