Minerals Technologies Inc (MTX)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.94 | 2.03 | 2.15 | 2.19 | 2.20 |
Minerals Technologies Inc consistently maintains a strong solvency position, as indicated by its debt-related ratios. The debt-to-assets ratio, which measures the proportion of the company's assets financed by debt, remained at a favorable level of 0.00 throughout the period under review. This suggests that the company has not relied heavily on debt to fund its operations and investments.
Similarly, the debt-to-capital and debt-to-equity ratios, which assess the company's leverage and financial risk, also stood at 0.00 across all the years. This signifies that Minerals Technologies Inc has effectively balanced its capital structure by keeping debt levels low in relation to both total capital and shareholder equity.
Moreover, the financial leverage ratio, which highlights the extent of the company's financial leverage, decreased from 2.20 in 2020 to 1.94 in 2024. This trend indicates a consistent improvement in the company's ability to generate earnings to cover interest expenses and debt obligations.
Overall, the solvency ratios portray a picture of prudent financial management and strong solvency for Minerals Technologies Inc, reflecting its ability to operate effectively with minimal reliance on debt financing.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 4.96 | 2.90 | 4.31 | 5.98 | 4.66 |
Interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. A higher ratio indicates a better ability to cover interest expenses.
For Minerals Technologies Inc, the interest coverage ratio has shown fluctuations over the past five years. In 2020, the ratio was 4.66, indicating that the company generated 4.66 times the earnings needed to cover its interest expenses.
In 2021, the ratio improved to 5.98, suggesting a stronger ability to meet interest obligations. However, there was a decline in 2022 to 4.31, although still relatively healthy.
The interest coverage ratio dropped significantly in 2023 to 2.90, signaling a potential strain on the company's ability to cover its interest payments from its earnings. However, there was a rebound in 2024 with a ratio of 4.96, indicating an improvement in the company's ability to meet its interest expenses.
Overall, while the company has experienced fluctuations in its interest coverage ratio over the years, it is important to closely monitor this ratio to ensure that Minerals Technologies Inc can continue to meet its interest obligations comfortably and sustainably.