Matson Inc (MATX)
Debt-to-assets ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | 389,300 | 427,700 | 549,700 | 685,600 | 910,000 |
| Total assets | US$ in thousands | 4,294,600 | 4,330,000 | 3,693,100 | 2,900,600 | 2,845,400 |
| Debt-to-assets ratio | 0.09 | 0.10 | 0.15 | 0.24 | 0.32 |
December 31, 2023 calculation
Debt-to-assets ratio = Long-term debt ÷ Total assets
= $389,300K ÷ $4,294,600K
= 0.09
The debt-to-assets ratio for Matson Inc has been decreasing over the past five years, indicating a positive trend in the company's financial leverage and debt management. The ratio was 0.10 as of December 31, 2023, compared to 0.12 in the previous year, and significantly lower than the ratios of 0.17, 0.26, and 0.34 in 2021, 2020, and 2019 respectively.
A decreasing trend in the debt-to-assets ratio suggests that Matson Inc has been reducing its reliance on debt financing and improving its ability to meet its financial obligations using its own assets. This can be beneficial for the company as it indicates a lower level of financial risk and greater stability in its capital structure.
Overall, the decreasing debt-to-assets ratio reflects positively on Matson Inc's financial health and management's efforts in maintaining a solid balance between debt and assets. It indicates a prudent approach towards managing its financial obligations and positions the company well for future growth and sustainability.
Peer comparison
Dec 31, 2023