Matthews International Corporation (MATW)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -14,081 | 62,522 | 74,924 | 79,030 | 85,713 | -15,850 | -24,362 | -41,286 | -76,440 | 5,347 | 2,533 | 8,095 | 37,969 | 50,265 | 46,629 | -54,382 | -70,955 | -155,158 | -130,174 | -16,846 |
| Interest expense (ttm) | US$ in thousands | 36,901 | 48,363 | 46,507 | 46,009 | 44,648 | 41,485 | 37,220 | 31,433 | 27,725 | 26,401 | 26,490 | 27,463 | 28,684 | 29,659 | 30,993 | 33,373 | 34,885 | 36,829 | 39,255 | 39,901 |
| Interest coverage | -0.38 | 1.29 | 1.61 | 1.72 | 1.92 | -0.38 | -0.65 | -1.31 | -2.76 | 0.20 | 0.10 | 0.29 | 1.32 | 1.69 | 1.50 | -1.63 | -2.03 | -4.21 | -3.32 | -0.42 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-14,081K ÷ $36,901K
= -0.38
The interest coverage ratio for Matthews International Corporation has varied over the past several quarters, indicating fluctuations in the company's ability to cover its interest expenses. The interest coverage ratio measures the company's ability to pay interest on its outstanding debt from its operating income.
Looking at the data, we can see that the interest coverage ratio has been inconsistent, with values ranging from as low as -4.21 to as high as 1.92. A ratio below 1 indicates that the company is not generating enough operating income to cover its interest payments, which raises concerns about its financial health and ability to meet debt obligations.
It is noteworthy that there are several negative values in the data, signifying that the company's operating income was insufficient to cover its interest expenses during those periods. This is a red flag for investors and creditors as it suggests a potential risk of default on debt repayments.
Overall, the fluctuating trend in Matthews International Corporation's interest coverage ratio highlights the importance of closely monitoring the company's financial performance and debt management practices to ensure long-term sustainability and stability.