MasterBrand Inc. (MBC)

Based on the provided data for MasterBrand Inc., the solvency ratios exhibit a stable trend over the four quarters of 2024.

1. Debt-to-assets ratio remained relatively consistent, standing at 0.28 in both March and June, slightly increasing to 0.36 in September, and then slightly decreasing to 0.34 by December. This indicates that, on average, 28% to 36% of the company's assets were financed by debt throughout the year.

2. Debt-to-capital ratio also followed a similar pattern, starting at 0.36 in March and June, rising to 0.45 in September, and then dropping to 0.44 in December. This ratio implies that 36% to 45% of the company's capital was derived from debt sources during the year.

3. Debt-to-equity ratio showed a consistent trend, remaining stable at 0.55 in March and June, increasing to 0.83 in September, and then improving slightly to 0.78 by December. This ratio indicates that, on average, 55% to 83% of the company's equity was financed through debt throughout 2024.

4. The financial leverage ratio exhibited a similar trend, starting at 1.95 in March and June, increasing to 2.30 in September, and then slightly declining to 2.26 by December. This ratio reflects that the company had a leverage of almost 2 times its equity across the year.

In conclusion, MasterBrand Inc. maintained a stable solvency position throughout 2024, with manageable levels of debt relative to its assets, capital, equity, and leverage. These ratios suggest that the company's debt levels were within reasonable limits, indicating a healthy financial structure during the year.

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Coverage ratios

Based on the provided data for MasterBrand Inc.'s interest coverage ratio, we can observe a positive trend over the four quarters of 2024. In March 31, 2024, the interest coverage ratio was 4.87, indicating that the company's operating income was sufficient to cover its interest expenses nearly 5 times. This ratio improved significantly to 7.68 in June 30, 2024, further demonstrating the company's ability to meet its interest obligations with increasing ease.

The positive trend continued in September 30, 2024, with the interest coverage ratio reaching 10.94, reflecting a more comfortable position for MasterBrand Inc. in servicing its interest payments. The substantial improvement in the December 31, 2024 ratio of 26.52 indicates a notable increase in the company's ability to cover its interest expenses, reflecting a strong financial position and potentially lower financial risk.

Overall, the upward trend in MasterBrand Inc.'s interest coverage ratio throughout 2024 suggests an improving financial health and liquidity position, indicating the company's capability to meet its interest obligations comfortably and potentially signaling a positive outlook for stakeholders and investors.