Matson Inc (MATX)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	606,900	534,000	415,800	450,078	526,636	616,381	819,054	1,208,990	1,591,272	1,956,356	1,996,929	1,701,559	1,375,164	952,880	720,381	545,786	423,794	330,203	263,611	220,121
Interest expense (ttm)	US$ in thousands	7,500	8,500	9,100	9,900	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
Interest coverage		80.92	62.82	45.69	45.46	43.17	45.66	50.87	68.30	88.40	102.97	104.55	84.65	60.85	41.79	30.79	20.91	15.47	11.75	9.22	8.31

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $606,900K ÷ $7,500K
= 80.92

The interest coverage ratio of Matson Inc has shown a consistent and strong improvement over the past few years. Starting from a ratio of 8.31 as of March 31, 2020, the interest coverage has steadily increased, reaching a peak of 104.55 as of June 30, 2022. This indicates that the company's ability to meet its interest payments has significantly improved.

However, from September 30, 2022, the interest coverage ratio started to decline, dropping to 43.17 as of December 31, 2023. This decline may raise some concerns about the company's ability to cover its interest costs effectively.

Subsequently, the interest coverage ratio fluctuated between 45.46 and 80.92 from March 31, 2024, to December 31, 2024. These fluctuations suggest some variability in Matson Inc's ability to cover its interest expenses during this period.

Overall, while Matson Inc has demonstrated a strong improvement in its interest coverage ratio over the years, the recent decline and fluctuations warrant further analysis to understand the factors contributing to these changes and to ensure the company's continued financial health.