Matson Inc (MATX)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 385,200 | 1,370,300 | 1,193,900 | 286,400 | 130,300 |
| Interest expense | US$ in thousands | 12,200 | 18,000 | 22,600 | 27,400 | 22,500 |
| Interest coverage | 31.57 | 76.13 | 52.83 | 10.45 | 5.79 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $385,200K ÷ $12,200K
= 31.57
The interest coverage ratio for Matson Inc has shown a consistent improvement over the past five years. In 2019, the interest coverage ratio was 5.74, indicating that the company earned 5.74 times the amount of interest expense it had to pay. This ratio increased to 10.23 in 2020, 52.54 in 2021, and further improved to 138.12 in 2022.
The significant increase in the interest coverage ratio reflects Matson Inc's ability to generate sufficient earnings to cover its interest payments comfortably. A higher interest coverage ratio is generally seen as a positive indicator of a company's financial health and ability to service its debt obligations.
However, the absence of a specific interest coverage ratio for the most recent period (Dec 31, 2023) limits the ability to assess the company's current financial position accurately. It would be important to monitor this ratio in the future to ensure that the trend of improving interest coverage continues, indicating ongoing financial stability for Matson Inc.
Peer comparison
Dec 31, 2023