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MBC (MasterBrand) Interest Coverage : 2.15 (As of Mar. 2025)


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What is MasterBrand Interest Coverage?

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. MasterBrand's Operating Income for the three months ended in Mar. 2025 was $42 Mil. MasterBrand's Interest Expense for the three months ended in Mar. 2025 was $-19 Mil. MasterBrand's interest coverage for the quarter that ended in Mar. 2025 was 2.15. The higher the ratio, the stronger the company's financial strength is.

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

MBC' s Interest Coverage Range Over the Past 10 Years
Min: 2.88   Med: 65.16   Max: No Debt
Current: 2.88


MBC's Interest Coverage is ranked worse than
74.54% of 326 companies
in the Furnishings, Fixtures & Appliances industry
Industry Median: 9.565 vs MBC: 2.88

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


MasterBrand Interest Coverage Historical Data

The historical data trend for MasterBrand'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.

MasterBrand Interest Coverage Chart

MasterBrand Annual Data
Trend Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial N/A N/A 125.50 4.81 3.37

MasterBrand Quarterly Data
Dec20 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 4.48 3.91 3.27 2.09 2.15

Competitive Comparison of MasterBrand's Interest Coverage

For the Furnishings, Fixtures & Appliances subindustry, MasterBrand'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.


MasterBrand's Interest Coverage Distribution in the Furnishings, Fixtures & Appliances Industry

For the Furnishings, Fixtures & Appliances industry and Consumer Cyclical sector, MasterBrand's Interest Coverage distribution charts can be found below:

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


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MasterBrand 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.

MasterBrand's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, MasterBrand's Interest Expense was $-74 Mil. Its Operating Income was $250 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,063 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2024 )/Interest Expense (A: Dec. 2024 )
=-1*249.6/-74
=3.37

MasterBrand's Interest Coverage for the quarter that ended in Mar. 2025 is calculated as

Here, for the three months ended in Mar. 2025, MasterBrand's Interest Expense was $-19 Mil. Its Operating Income was $42 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,110 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*41.8/-19.4
=2.15

* 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.

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


MasterBrand  (NYSE:MBC) 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 .


MasterBrand Interest Coverage Related Terms

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


MasterBrand Business Description

Traded in Other Exchanges
Address
3300 Enterprise Parkway, Suite 300, Beachwood, OH, USA, 44122
MasterBrand Inc operates as a residential cabinet manufacturer in North America. It offers a comprehensive portfolio of residential cabinetry products for the kitchen, bathroom, and other parts of the home. The firm sells its products throughout the United States and Canada through three primary channels: dealers, retailers and builders.
Executives
Robert Crisci director C/O ROPER TECHNOLOGIES, INC., 6901 PROFESSIONAL PARKWAY, SARASOTA FL 34240
Juliana L Chugg director 1200 WILLOW LAKE BOULEVARD, PO BOX 64683, ST PAUL MN 55164-0683
Mark A. Young officer: VP, Chief Accounting Officer 701 LIMA AVENUE, FINDLAY OH 45840
Ann F Hackett director
Kurt Wanninger officer: EVP & Chief Operations Officer C/O NORCRAFT COMPANIES, INC., 3020 DENMARK AVENUE, SUITE 100, EAGAN MN 55121
Goldman Sachs Group Inc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
Goldman Sachs & Co. Llc 10 percent owner 200 WEST STREET, NEW YORK NY 10282
David D Petratis director 1415 ROSELLE ROAD, PALATINE IL 60067
Andrean Horton officer: EVP, CLO & Secretary 3637 RIDGEWOOD RD, FAIRLAWN X1 44333
Jeffery S. Perry director 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Bruce Alan Kendrick officer: EVP & Chief HR Officer 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Van Doren Martin Scott officer: EVP, Sales 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Andrea Helen Simon officer: EVP & CFO 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Navneet Grewal officer: EVP, Chief Digital & Tech Off. 520 LAKE COOK ROAD, SUITE 300, DEERFIELD IL 60015
Patrick D Hallinan director FORTUNE BRANDS HOME & SECURITY, INC., 520 LAKE COOK ROAD, DEERFIELD IL 60015