Amcor PLC (AMCR)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,241,000 | 1,157,000 | 1,138,000 | 1,458,000 | 1,531,000 | 1,474,000 | 1,554,000 | 1,308,000 | 1,264,000 | 1,376,000 | 1,373,000 | 1,359,000 | 1,353,000 | 1,276,100 | 1,185,100 | 1,157,100 | 1,006,100 | 934,500 | 843,200 |
| Interest expense (ttm) | US$ in thousands | 348,000 | 329,000 | 326,000 | 316,000 | 290,000 | 268,000 | 218,000 | 178,000 | 159,000 | 155,000 | 155,000 | 153,000 | 153,000 | 162,000 | 172,000 | 187,000 | 207,000 | 206,700 | 211,800 |
| Interest coverage | 3.57 | 3.52 | 3.49 | 4.61 | 5.28 | 5.50 | 7.13 | 7.35 | 7.95 | 8.88 | 8.86 | 8.88 | 8.84 | 7.88 | 6.89 | 6.19 | 4.86 | 4.52 | 3.98 |
June 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,241,000K ÷ $348,000K
= 3.57
The interest coverage ratio for Amcor PLC has shown a generally positive trend over the past several quarters. The ratio, which measures the company's ability to meet its interest obligations with its earnings before interest and taxes (EBIT), has ranged from 3.49 to 8.88 over the past few years.
The ratio increased from 3.49 in December 2023 to 4.61 in September 2023, indicating an improvement in the company's ability to cover its interest expenses. Subsequently, the interest coverage ratio continued to rise, reaching a peak of 8.88 in March 2022.
This upward trend suggests that Amcor PLC has been generating more than enough earnings to comfortably cover its interest payments, providing a buffer against potential financial distress. The consistent improvement in the interest coverage ratio indicates a positive financial health and the company's ability to manage its debt obligations effectively.
Peer comparison
Jun 30, 2024