Minerals Technologies Inc (MTX)
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 | 280,000 | 263,000 | 182,200 | 181,200 | 168,100 | 143,900 | 182,600 | 200,800 | 204,700 | 224,100 | 252,400 | 247,100 | 240,600 | 229,700 | 215,900 | 192,000 | 191,000 | 186,600 | 202,200 | 208,300 |
| Interest expense (ttm) | US$ in thousands | 56,400 | 60,200 | 62,700 | 62,300 | 61,600 | 58,600 | 53,100 | 49,000 | 44,600 | 41,300 | 39,500 | 38,200 | 38,300 | 38,900 | 39,800 | 38,800 | 38,200 | 38,000 | 38,900 | 41,700 |
| Interest coverage | 4.96 | 4.37 | 2.91 | 2.91 | 2.73 | 2.46 | 3.44 | 4.10 | 4.59 | 5.43 | 6.39 | 6.47 | 6.28 | 5.90 | 5.42 | 4.95 | 5.00 | 4.91 | 5.20 | 5.00 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $280,000K ÷ $56,400K
= 4.96
Minerals Technologies Inc's interest coverage ratio provides insight into the company's ability to meet its interest obligations with its operating income. The trend analysis of the interest coverage ratio from March 31, 2020, to December 31, 2024, shows fluctuations in the company's ability to cover its interest expenses.
The interest coverage ratio started at 5.00 on March 31, 2020, indicating that the company generated enough operating income to cover its interest expenses 5 times over. The ratio slightly increased to 5.20 by June 30, 2020. However, by September 30, 2020, the ratio decreased to 4.91, possibly indicating a slight weakening in the company's ability to cover its interest payments.
From December 31, 2020, to March 31, 2021, the interest coverage ratio fluctuated around 5.00, showing stability in meeting interest obligations. The ratio then showed a slight improvement, reaching 5.42 by June 30, 2021, and further increased to 6.28 by December 31, 2021, suggesting better financial health and stronger ability to cover interest expenses.
The interest coverage ratio continued to improve, reaching its peak at 6.47 on March 31, 2022. However, from June 30, 2022, to December 31, 2024, the ratio started to decline, indicating a potential decrease in the company's ability to cover interest costs. The ratio dropped to 2.91 by June 30, 2024, which was the same as the level reported on March 31, 2023.
By the end of the data period on December 31, 2024, the interest coverage ratio stood at 4.96, showing a slight improvement from the previous quarter. Overall, the fluctuating trend in Minerals Technologies Inc's interest coverage ratio suggests varying levels of financial health and ability to meet interest obligations during the analyzed period. Further monitoring and analysis of the company's financial performance would be necessary to assess its long-term sustainability.
Peer comparison
Dec 31, 2024