Minerals Technologies Inc (MTX)

Solvency ratios

	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
Debt-to-assets ratio	0.27	0.27	0.27	0.27	0.27	0.28	0.28	0.27	0.28	0.28	0.29	0.29	0.29	0.31	0.21	0.27	0.26	0.27	0.28	0.28
Debt-to-capital ratio	0.36	0.37	0.36	0.36	0.37	0.39	0.38	0.37	0.38	0.38	0.38	0.39	0.39	0.41	0.32	0.37	0.37	0.38	0.39	0.39
Debt-to-equity ratio	0.55	0.58	0.57	0.57	0.59	0.63	0.61	0.60	0.61	0.62	0.62	0.64	0.64	0.70	0.46	0.60	0.59	0.60	0.63	0.64
Financial leverage ratio	2.03	2.10	2.10	2.13	2.15	2.26	2.20	2.19	2.19	2.25	2.17	2.19	2.20	2.23	2.17	2.22	2.22	2.23	2.26	2.27

Solvency ratios provide insight into a company's ability to meet its long-term financial obligations. In the case of Minerals Technologies, Inc., the trend analysis of solvency ratios for the past eight quarters reveals the following:

1. Debt-to-assets ratio has remained relatively stable around the 0.31 level over the past eight quarters. This indicates that around 30% of the company's assets are financed by debt, which suggests a good level of asset coverage relative to debt.

2. Debt-to-capital ratio, which measures the proportion of a company's capital that is financed by debt, has fluctuated between 0.38 and 0.41. This indicates that debt has accounted for around 38% to 41% of the company's total capital structure.

3. Debt-to-equity ratio has shown a declining trend from 0.71 in Q3 2022 to 0.61 in Q4 2023. This suggests that the company has been reducing its reliance on debt financing in comparison to equity over the period under review.

4. The financial leverage ratio, which indicates the extent to which the company's operations are funded by creditors versus shareholders, has shown a slight decrease from 2.26 in Q3 2022 to 2.03 in Q4 2023. This implies a lower level of financial risk as the company is relying less on debt to finance its operations.

Overall, the solvency ratios of Minerals Technologies, Inc. demonstrate a relatively stable and improving solvency position over the past eight quarters, with a decreasing trend in debt-to-equity and financial leverage ratios. This indicates a positive shift towards a more balanced and sustainable capital structure, reflecting the company's ability to manage its long-term financial obligations effectively.

Coverage ratios

	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
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

Minerals Technologies, Inc.'s interest coverage ratio has shown a declining trend in the most recent quarters, moving from 5.79 in Q4 2022 to 4.80 in Q4 2023. Despite this decrease, the company's interest coverage ratio remains above 1, indicating that it is generating more than enough operating income to cover its interest expenses. This suggests that Minerals Technologies, Inc. has a strong ability to meet its interest obligations using its earnings, although the declining trend should be monitored for any potential strains on the company's financial health. The variations in the interest coverage ratio over the quarters may be influenced by factors such as changes in operating income, interest rates, and overall financial performance.