Matson Inc (MATX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.09 | 0.09 | 0.10 | 0.10 | 0.10 | 0.10 | 0.12 | 0.13 | 0.15 | 0.18 | 0.19 | 0.21 | 0.24 | 0.27 | 0.30 | 0.31 | 0.32 | 0.30 | 0.30 | 0.31 |
| 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 |
| Debt-to-equity ratio | 0.16 | 0.17 | 0.18 | 0.18 | 0.19 | 0.20 | 0.24 | 0.28 | 0.33 | 0.42 | 0.50 | 0.61 | 0.71 | 0.85 | 1.01 | 1.09 | 1.13 | 1.05 | 1.03 | 1.08 |
| Financial leverage ratio | 1.79 | 1.80 | 1.84 | 1.86 | 1.89 | 1.94 | 1.95 | 2.08 | 2.21 | 2.40 | 2.59 | 2.85 | 3.02 | 3.15 | 3.41 | 3.54 | 3.53 | 3.45 | 3.47 | 3.51 |
Matson Inc's solvency ratios indicate the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio has remained relatively stable over the period, ranging from 0.10 to 0.15, suggesting that a significant portion of the company's assets is financed by debt. The consistent low levels of this ratio imply that Matson Inc has a strong asset base relative to its debt.
The Debt-to-capital ratio has shown a slight upward trend, increasing from 0.15 to 0.24, indicating a higher reliance on debt capital compared to equity capital. This could potentially increase the company's financial risk as a larger proportion of its capital structure is debt-funded.
The Debt-to-equity ratio has also seen a steady increase over the period, rising from 0.18 to 0.31. This suggests that Matson Inc's debt levels have outpaced its equity growth, potentially indicating a higher degree of financial leverage and risk.
The Financial leverage ratio has fluctuated but generally increased from 1.79 to 2.08, indicating a rising financial risk as the company has taken on more debt relative to its equity. A higher financial leverage ratio typically signifies higher interest and principal repayment obligations, highlighting the importance of monitoring the company's ability to service its debt.
In summary, Matson Inc's solvency ratios reflect a moderately leveraged capital structure, with a gradual increase in debt levels over the period. This trend indicates a potential increase in financial risk which should be carefully monitored by stakeholders.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage is a financial ratio that indicates a company's ability to meet its interest payment obligations on its outstanding debt. It is calculated by dividing a company's earnings before interest and taxes (EBIT) by its interest expenses. A higher interest coverage ratio implies that the company is more capable of servicing its debt.
Looking at the table provided, we observe that Matson Inc's interest coverage has shown a positive trend over the past eight quarters. In Q4 2022, the interest coverage ratio was 138.12, indicating that the company's EBIT was sufficient to cover its interest expenses 138 times over. This significant coverage ratio suggests a strong ability to pay off interest obligations.
Subsequently, in Q1 2023, the interest coverage ratio improved further to 738.23, reflecting a substantial increase in the company's earning capacity compared to the previous quarter. This remarkable leap in interest coverage signifies a heightened ability to service debt and indicates a positive financial performance.
Overall, the consistent upward trajectory in Matson Inc's interest coverage ratio from Q4 2022 to Q1 2023 showcases a healthy financial position and an improved capacity to meet interest payments. This trend suggests effective financial management and operational efficiency within the company.