MasTec Inc (MTZ)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 3.46 | 3.40 | 2.80 | 2.61 | 2.80 |
MasTec Inc has consistently maintained a low level of indebtedness over the past five years as indicated by its debt-to-assets, debt-to-capital, and debt-to-equity ratios all being at 0.00 each year. This suggests that the company has financed its assets primarily through equity rather than debt.
However, the financial leverage ratio has shown some fluctuation over the same period, increasing from 2.61 in 2020 to 3.46 in 2023. This indicates that the company's reliance on debt to fund its operations has increased over the past three years, potentially raising its financial risk.
Overall, MasTec Inc appears to have a strong solvency position with minimal debt obligations relative to its assets and capital structure. Nonetheless, the upward trend in the financial leverage ratio highlights a need for the company to manage its leverage levels prudently to maintain its financial stability in the future.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -19.82 | 12.81 | 134.81 | 142.77 | 176.56 |
The interest coverage ratio for MasTec Inc has shown significant fluctuations over the past five years. In 2023, the interest coverage ratio deteriorated sharply to -19.82, indicating a concerning situation where the company's earnings before interest and taxes (EBIT) may not be sufficient to cover its interest payments. This sudden decrease raises red flags about the company's financial health and its ability to meet its debt obligations.
Contrastingly, in 2022, the interest coverage ratio was notably higher at 12.81, suggesting a healthier position compared to the previous year. The company's ability to cover its interest payments improved in 2022, reflecting a more stable financial performance.
The years 2021, 2020, and 2019 exhibited even higher interest coverage ratios of 134.81, 142.77, and 176.56, respectively. These figures indicate a robust capacity to cover interest expenses with operating income. The company's financial strength and ability to meet its interest payments were particularly strong in those years.
Overall, the interest coverage ratio for MasTec Inc has displayed significant variability, with a concerning decline in 2023 after showing steady and strong coverage in the preceding years. This fluctuation underscores the importance of closely monitoring the company's financial performance and debt management practices.