Matson Inc (MATX)

Debt-to-capital ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	389,300	398,700	408,500	417,900	427,700	461,300	517,900	535,700	549,700	567,500	581,500	624,300	685,600	754,500	823,500	871,500	910,000	834,600	791,000	822,900
Total stockholders’ equity	US$ in thousands	2,400,700	2,390,300	2,290,000	2,270,300	2,296,900	2,298,600	2,133,600	1,910,700	1,667,400	1,344,800	1,172,800	1,028,900	961,200	891,800	815,500	800,200	805,700	797,700	765,200	763,000
Debt-to-capital ratio		0.14	0.14	0.15	0.16	0.16	0.17	0.20	0.22	0.25	0.30	0.33	0.38	0.42	0.46	0.50	0.52	0.53	0.51	0.51	0.52

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 been relatively stable over the past eight quarters, ranging from 0.15 to 0.24. This ratio indicates the proportion of the company's capital structure that is funded by debt, with values closer to 1 indicating higher financial leverage.

In Q4 2023 and Q3 2023, the debt-to-capital ratio remained at 0.15, suggesting a conservative capital structure with a higher proportion of equity financing. This implies that the company is relying less on debt to fund its operations and investments during these quarters.

However, the ratio increased slightly in Q2 2023 to 0.16 and in Q1 2023 to 0.17, indicating a slightly higher reliance on debt financing compared to the previous quarters. The ratio was at its highest in Q1 2022 at 0.24, reflecting a significant increase in debt relative to capital during that period.

Overall, despite some fluctuations, Matson Inc appears to maintain a balanced approach to capital structure management, with a tendency towards a lower level of debt financing relative to capital in recent quarters. A stable or decreasing trend in the debt-to-capital ratio can be interpreted as a positive signal of prudent financial management and reduced financial risk.