Matthews International (Matthews International) Interest Coverage

: 0.81 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Matthews International's Operating Income for the three months ended in Dec. 2023 was $9 Mil. Matthews International's Interest Expense for the three months ended in Dec. 2023 was $-12 Mil. Matthews International's interest coverage for the quarter that ended in Dec. 2023 was 0.81. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Matthews International's Interest Coverage or its related term are showing as below:

MATW' s Interest Coverage Range Over the Past 10 Years
Min: 0.75 Med: 2.93 Max: 6.46
Current: 1.75

MATW's Interest Coverage is ranked worse than
77.53% of 396 companies
in the Conglomerates industry
Industry Median: 5.06 vs MATW: 1.75

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Matthews International Interest Coverage Historical Data

The historical data trend for Matthews International's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Matthews International Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

2.15

0.75

1.47

1.39

1.97

Matthews International Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																1.69	1.91	1.97	2.30	0.81

Competitive Comparison

For the Conglomerates subindustry, Matthews International's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Matthews International Interest Coverage Distribution

For the Conglomerates industry and Industrials sector, Matthews International's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Matthews International's Interest Coverage falls into.

Matthews International Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Matthews International's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Matthews International's Interest Expense was $-45 Mil. Its Operating Income was $88 Mil. And its Long-Term Debt & Capital Lease Obligation was $837 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	88.117	/	-44.648
	=	1.97

Matthews International's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Matthews International's Interest Expense was $-12 Mil. Its Operating Income was $9 Mil. And its Long-Term Debt & Capital Lease Obligation was $903 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	9.427	/	-11.576
	=	0.81

The higher the ratio, the stronger the company's Financial Strength is.

Matthews International (NAS:MATW) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Matthews International Interest Coverage Related Terms

Thank you for viewing the detailed overview of Matthews International's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Matthews International (Matthews International) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Industrials » Conglomerates » Matthews International Corp (NAS:MATW) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

MW1A:Germany MW1A:Germany

Address

Two Northshore Center, Pittsburgh, PA, USA, 15212-5851

Website

https://www.matw.com

Matthews International Corp is a personal services company that primarily provides brand solution services, memorialization products, and industrial products in the United States and Europe. The majority of Matthews' revenue is derived from its SGK Brand Solutions business, which provides brand development services, printing equipment, creative design services, and embossing tools to the consumer packaged goods and packaging industries. The company's Memorialization segment, which sells bronze and granite memorials, caskets, and cremation equipment to the cemetery and funeral home industries, also contributes a significant amount. Most of Matthews' revenue is generated from sales made in the U.S., while European customers also contribute a sizable percentage.

Executives

Aleta W. Richards	director	TWO NORTHSHORE CENTER, PITTSBURGH PA 15212
Joseph C Bartolacci	officer: President, York Casket Divisio
Ronald C Awenowicz	officer: SVP, Global Compliance & HR	TWO NORTHSHORE CENTER, PITTSBURGH PA 15212
Lee Lane	officer: SVP Matthews Automation Soluti	TWO NORTHSHORE CENTER, PITTSBURGH PA 15212
Reena Gurtner	officer: SVP, Global Talent & HR	241 RIVER VALLEY ROAD, GIANURN BUILDING, LEVEL 4, SINGAPORE U0 238298
Brian J Dunn	officer: President, Marking Products Di
Steven F Nicola	officer: Chief Financial Officer
David A Schawk	director, officer: President, Brand Solutions	674 SKYE LANE, BARRINGTON IL 60010
Lillian Etzkorn	director	1570 FOREST LANE, BLOOMFIELD HILLS MI 48301
Brady Edward M Jr	officer: Chief Information Officer	TWO NORTH SHORE CENTER, PITTSBURGH PA 15212
Tunon Alvaro Garcia	director
Davor Brkovich	officer: Chief Information Officer	252 PARKWEST DRIVE, PITTSBURGH PA 15275
Gary Raymond Kohl	officer: President SGK	52 WOODLAND AVENUE, GLEN RIDGE NJ 07028
Robert M Marsh	officer: Treasurer	108 NANTUCKET DRIVE, PITTSBURGH PA 15238
Brian D Walters	officer: V.P. and General Counsel	TWO NORTHSHORE CENTER, PITTSBURGH PA 15212