Matson Inc (MATX)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	385,200	400,200	596,700	984,400	1,370,300	1,745,800	1,786,400	1,506,900	1,193,900	836,000	557,100	394,400	286,400	192,800	146,700	125,800	130,300	135,800	140,400	155,000
Interest expense (ttm)	US$ in thousands	12,200	13,500	16,100	17,700	18,000	19,000	19,100	20,100	22,600	22,800	23,400	26,100	27,400	28,100	28,600	26,500	22,500	21,200	19,400	18,300
Interest coverage		31.57	29.64	37.06	55.62	76.13	91.88	93.53	74.97	52.83	36.67	23.81	15.11	10.45	6.86	5.13	4.75	5.79	6.41	7.24	8.47

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $385,200K ÷ $12,200K
= 31.57

The interest coverage ratio for Matson Inc has shown a consistent improvement over the quarters leading up to Q1 2023. In Q1 2023, the interest coverage ratio reached a substantial level of 738.23, indicating that the company's earnings before interest and taxes (EBIT) were sufficient to cover its interest expenses by approximately 738 times. This signifies a strong ability of Matson Inc to meet its interest obligations using its operating profits. Comparing this to the ratios in the previous quarters, we observe a significant upward trend, indicating increasing profitability and financial stability for the company. It is essential for investors and creditors to monitor this ratio over time to assess the company's ability to handle its debt burden effectively.