Metallus Inc (MTUS)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	110,800	99,100	91,200	44,300	80,700	101,100	166,700	230,200	210,400	183,000	112,000	49,600	-19,600	-48,100	-128,000	-136,300	-134,800	-110,400	-46,300	-16,900
Interest expense (ttm)	US$ in thousands	2,600	2,700	2,800	3,100	3,400	4,000	4,600	4,900	5,700	6,300	8,200	10,000	11,300	12,600	12,900	13,500	14,700	15,700	16,200	17,000
Interest coverage		42.62	36.70	32.57	14.29	23.74	25.28	36.24	46.98	36.91	29.05	13.66	4.96	-1.73	-3.82	-9.92	-10.10	-9.17	-7.03	-2.86	-0.99

March 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $110,800K ÷ $2,600K
= 42.62

The interest coverage ratio for Metallus Inc has shown significant fluctuation over the past few quarters. In March 2024, the interest coverage ratio was 42.62, indicating the company's ability to cover its interest expenses 42.62 times with its earnings before interest and taxes (EBIT). This suggests a strong ability to meet its interest obligations.

However, looking back at the trend, the interest coverage ratio has been volatile, with fluctuations between 4.96 and -10.10 over the previous quarters. This variability may indicate inconsistencies in the company's financial performance and ability to generate sufficient earnings to cover its interest payments.

It is important for investors and stakeholders to closely monitor the interest coverage ratio of Metallus Inc to assess the company's financial health and ability to service its debt obligations. Additionally, management should focus on stabilizing and improving the interest coverage ratio to ensure long-term financial stability and sustainability.