Metallus, Inc (MTUS)

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	5,800	33,400	74,400	108,200	96,400	88,400	41,400	78,100	101,400	167,600	231,800	209,800	180,200	110,900	50,100	-16,600	-46,700	-128,000	-137,900	-138,500
Interest expense (ttm)	US$ in thousands	2,500	2,800	2,700	2,600	2,700	2,800	2,400	2,400	2,900	3,200	4,300	5,400	6,100	7,900	9,600	10,900	12,200	12,900	13,500	14,700
Interest coverage		2.32	11.93	27.56	41.62	35.70	31.57	17.25	32.54	34.97	52.38	53.91	38.85	29.54	14.04	5.22	-1.52	-3.83	-9.92	-10.21	-9.42

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $5,800K ÷ $2,500K
= 2.32

Metallus, Inc's interest coverage ratio has shown a significant improvement over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).

Initially, from March 31, 2020, to June 30, 2021, the company experienced negative interest coverage ratios, indicating that the EBIT was insufficient to cover the interest expenses during those periods. This could have raised concerns about the company's financial health and ability to meet its debt obligations.

However, starting from September 30, 2021, the interest coverage ratio began to increase significantly, reaching a peak of 53.91 on June 30, 2022. This indicates a positive trend where the company's EBIT has been consistently higher than its interest expenses, signaling a healthier financial position.

Although there was a slight dip in the interest coverage ratio in the subsequent periods, the company managed to maintain a relatively strong interest coverage ratio above 10, indicating a comfortable cushion to meet its interest obligations.

Overall, the improvement in Metallus, Inc's interest coverage ratio over the period reflects a positive trend towards better financial stability and a reduced risk of defaulting on its debt payments. Investors and creditors may view this improvement favorably as it suggests a more sustainable financial position for the company.