MasterBrand Inc. (MBC)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | ||
|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 236,000 | 257,000 | 292,600 | 301,700 |
| Interest expense (ttm) | US$ in thousands | 8,900 | 23,500 | 38,100 | 61,900 |
| Interest coverage | 26.52 | 10.94 | 7.68 | 4.87 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $236,000K ÷ $8,900K
= 26.52
Interest coverage is a key financial ratio that indicates a company's ability to meet its interest obligations through its operating income. In the case of MasterBrand Inc., we observe an improving trend in interest coverage over the four quarters of 2024.
As of March 31, 2024, the interest coverage ratio was 4.87, indicating that the company's operating income was able to cover its interest expenses nearly 5 times over. By June 30, 2024, this ratio increased to 7.68, signaling a stronger ability to meet interest payments.
In the following quarter, as of September 30, 2024, the interest coverage ratio rose further to 10.94, showing a significant improvement in the company’s ability to cover interest costs with its operating income.
By the end of the year, as of December 31, 2024, MasterBrand Inc. achieved an impressive interest coverage ratio of 26.52. This substantial ratio indicates a robust ability to pay interest obligations, providing a strong buffer for the company against fluctuations in its financial performance.
Overall, the trend of increasing interest coverage ratios throughout 2024 reflects an improving financial health and stability for MasterBrand Inc., and suggests a decreasing risk of default on its interest payments.
Peer comparison
Dec 31, 2024