Minerals Technologies Inc (MTX)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.94 | 1.99 | 2.01 | 2.01 | 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 |
Minerals Technologies Inc has consistently maintained a strong solvency position based on its solvency ratios. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have all been reported as 0.00 across the periods from March 31, 2020, to December 31, 2024. This indicates that the company has had no debt in relation to its assets, capital, or equity during this time frame.
Furthermore, the financial leverage ratio has displayed a declining trend, decreasing from 2.22 on March 31, 2020, to 1.94 on December 31, 2024. This signifies that the company has been reducing its financial leverage over the years, which is a positive indicator of improved financial health and reduced risk.
Overall, the solvency ratios suggest that Minerals Technologies Inc has been effectively managing its debt levels and maintaining a strong financial position with little to no debt relative to its assets, capital, and equity. Additionally, the decreasing financial leverage ratio reflects prudence in managing its capital structure and minimizing financial risk.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Minerals Technologies Inc's interest coverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio indicates the company's ability to meet its interest obligations from its operating income. A higher ratio is generally favorable as it suggests the company is more capable of servicing its debt.
Looking at the data provided, we observe that the interest coverage ratio ranged from a low of 2.46 on September 30, 2023, to a high of 6.47 on March 31, 2022. The ratio experienced some variability during this period, reflecting changes in the company's operating income relative to its interest expenses.
In the earlier years, from 2020 to 2022, the interest coverage ratio generally remained above 5, indicating a healthy ability to cover interest payments. However, there was a notable decline in the ratio in the latter half of 2023 and into 2024, where it dipped below 3 at times.
This downward trend in the interest coverage ratio may raise concerns about the company's ability to generate sufficient operating income to meet its interest obligations comfortably. Investors and creditors may monitor this metric closely to assess the company's financial health and its capacity to service its debt in the long term.
It would be advisable for stakeholders to delve deeper into the company's financial performance and future prospects to understand the factors contributing to the fluctuations in the interest coverage ratio and assess the associated risks.