Matson Inc (MATX)

The solvency ratios of Matson Inc, as reflected in the data provided, indicate a favorable trend in the company's ability to meet its long-term financial obligations.

1. Debt-to-assets ratio: This ratio shows the proportion of the company's assets financed by debt. Matson Inc has demonstrated a consistent decline in this ratio over the past five years, starting at 0.34 in 2019 and decreasing to 0.10 in 2023. This indicates that the company relies less on debt to finance its assets, which is a positive sign for its solvency.

2. Debt-to-capital ratio: Reflecting the percentage of capital provided by debt, this ratio also shows a downward trend over the five years, decreasing from 0.54 in 2019 to 0.15 in 2023. This trend suggests that Matson Inc has been reducing its dependence on debt financing in relation to its overall capital structure, enhancing its financial stability.

3. Debt-to-equity ratio: This ratio reveals how much of the company's assets are funded by shareholder equity versus debt. Matson Inc's ratio has shown a consistent decline from 2019 to 2023, indicating a decreasing reliance on debt relative to equity for funding operations and investments.

4. Financial leverage ratio: The financial leverage ratio indicates the extent to which a company utilizes debt to finance its operations. Matson Inc has shown a decreasing trend in this ratio over the past five years, which implies that the company's reliance on debt has reduced in financing its assets and operations.

Overall, the improving trend in Matson Inc's solvency ratios suggests a strengthening financial position and a reduced risk of insolvency. The company's ability to lower its debt levels and improve its capital structure signifies a healthier financial position and enhanced long-term sustainability.

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Coverage ratios

Matson Inc's interest coverage ratio has shown a strong upward trend over the past five years, indicating an improvement in the company's ability to meet its interest payment obligations. The interest coverage ratio increased from 5.74 in 2019 to 138.12 in 2022, before the data for 2023 is missing. This significant increase suggests that Matson Inc's earnings before interest and taxes (EBIT) have more than adequately covered its interest expenses in recent years. A higher interest coverage ratio implies a lower risk of financial distress due to an inability to meet interest payments on outstanding debt. This improvement in the interest coverage ratio reflects positively on the company's financial health and ability to service its debt obligations.