Minerals Technologies Inc (MTX)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 280,000 | 171,800 | 204,000 | 242,900 | 178,100 |
| Interest expense | US$ in thousands | 56,400 | 59,200 | 47,300 | 40,600 | 38,200 |
| Interest coverage | 4.96 | 2.90 | 4.31 | 5.98 | 4.66 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $280,000K ÷ $56,400K
= 4.96
Minerals Technologies Inc's interest coverage ratio, a key financial metric used to assess a company's ability to cover its interest expenses with its operating income, has demonstrated fluctuations over the period from December 31, 2020, to December 31, 2024.
Starting at 4.66 in December 31, 2020, the interest coverage ratio improved to 5.98 by December 31, 2021, indicating the company had a stronger ability to meet its interest obligations from its operating income. However, the ratio declined to 4.31 by December 31, 2022, suggesting a slight decrease in the company's ability to cover its interest expenses.
Further, the interest coverage ratio significantly dropped to 2.90 in December 31, 2023, raising concerns about the company's capacity to pay its interest obligations from operating earnings. Subsequently, the ratio rebounded to 4.96 by December 31, 2024, reflecting an improvement in the company's ability to service its interest payments.
Overall, the fluctuating trend in Minerals Technologies Inc's interest coverage ratio indicates varying levels of financial strength and debt-servicing capacity over the analyzed period. It is crucial for stakeholders to closely monitor these ratios to assess the company's financial health and debt repayment capabilities.
Peer comparison
Dec 31, 2024