Matson Inc (MATX)
Debt-to-capital 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 stockholders’ equity | US$ in thousands | 2,400,700 | 2,296,900 | 1,667,400 | 961,200 | 805,700 |
| Debt-to-capital ratio | 0.14 | 0.16 | 0.25 | 0.42 | 0.53 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $389,300K ÷ ($389,300K + $2,400,700K)
= 0.14
The debt-to-capital ratio of Matson Inc has shown a declining trend over the past five years, indicating an improving financial position in terms of leverage. In 2023, the ratio stood at 0.15, which is the lowest level compared to the previous four years. This suggests that Matson Inc relies less on debt financing and has a stronger capital base to support its operations. The decreasing trend in the debt-to-capital ratio may be a positive signal to investors and creditors, as it signifies reduced financial risk and potentially better solvency for the company. It is essential for Matson Inc to continue managing its debt levels prudently to maintain a healthy balance between debt and capital in the future.
Peer comparison
Dec 31, 2023