Minerals Technologies Inc (MTX)
Interest coverage
| 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 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 167,000 | 141,700 | 176,700 | 194,800 | 198,200 | 218,600 | 250,500 | 244,600 | 238,200 | 227,600 | 213,500 | 176,100 | 175,000 | 171,100 | 177,300 | 196,500 | 198,700 | 214,200 | 225,900 | 249,200 |
| Interest expense (ttm) | US$ in thousands | 59,200 | 56,700 | 52,400 | 48,300 | 43,900 | 40,200 | 38,400 | 37,100 | 37,200 | 38,900 | 39,800 | 38,800 | 38,200 | 37,400 | 38,300 | 41,100 | 43,200 | 45,300 | 46,000 | 46,600 |
| Interest coverage | 2.82 | 2.50 | 3.37 | 4.03 | 4.51 | 5.44 | 6.52 | 6.59 | 6.40 | 5.85 | 5.36 | 4.54 | 4.58 | 4.57 | 4.63 | 4.78 | 4.60 | 4.73 | 4.91 | 5.35 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $167,000K ÷ $59,200K
= 2.82
Minerals Technologies, Inc. has exhibited a decreasing trend in its interest coverage ratio over the past eight quarters. The interest coverage ratio, which reflects the company's ability to meet its interest payments with its operating income, has decreased from 6.80 in Q1 2022 to 4.80 in Q4 2023. This downward trend indicates that the company's ability to cover its interest expenses has weakened over time. While the ratio remains above 1, indicating that the company is generating enough operating income to cover its interest payments, investors and creditors may view the declining trend as a potential cause for concern. Further analysis of the company's financial performance and interest obligations is warranted to assess the sustainability of this trend and its implications for the company's financial health.
Peer comparison
Dec 31, 2023