MasTec Inc (MTZ)
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 | 0.00 | 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 | 3.46 | 3.53 | 3.47 | 3.42 | 3.40 | 2.94 | 2.98 | 2.83 | 2.80 | 2.65 | 2.73 | 2.66 | 2.61 | 2.78 | 2.86 | 2.90 | 2.80 | 2.90 | 3.10 | 3.40 |
MasTec Inc's solvency ratios, including the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, have consistently remained at 0.00 across the given time periods. This indicates that the company has not used any debt financing to fund its operations and has relied solely on equity to support its assets and capital structure.
However, the financial leverage ratio has fluctuated over time, ranging from 2.61 to 3.53. This ratio measures the proportion of a company's assets that are financed by debt rather than equity. The increasing trend in the financial leverage ratio suggests that MasTec Inc has been using more debt to fund its operations, potentially increasing its financial leverage and risk exposure.
Overall, while the company's lack of debt in its capital structure can be seen as a positive indicator of financial stability, the increasing trend in the financial leverage ratio signals a shift towards a more leveraged financial position, which could increase the company's financial risk in the future.
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 | -4.31 | -4.40 | -4.80 | -6.20 | -7.40 | -8.12 | -8.44 | -6.70 | -2.06 | 4.89 | 5.77 | 5.38 | 3.94 | 3.04 | 3.98 | 29.40 | 46.25 | 63.43 | 81.07 | 73.61 |
The interest coverage ratio of MasTec Inc has exhibited significant fluctuations over the periods analyzed. The ratio indicates the extent to which the company's operating income can cover its interest expenses.
From March 2019 to June 2021, MasTec Inc maintained a healthy interest coverage ratio, indicating a strong ability to cover interest expenses with operating income. However, from December 2021 to March 2023, the interest coverage ratio declined sharply, reaching negative values. This suggests that the company's operating income was insufficient to cover its interest expenses during these periods.
The negative interest coverage ratios from December 2021 to March 2023 raise concerns about MasTec Inc's financial health and ability to meet its debt obligations. The company may have faced challenges generating enough operating income to cover its interest payments during these specific quarters.
It is essential for MasTec Inc to closely monitor and improve its interest coverage ratio to ensure financial stability and mitigate the risks associated with high levels of debt and interest expenses. The company should focus on enhancing profitability, optimizing cost structures, and potentially refinancing debt to improve its interest coverage ratio in the future.