AptarGroup Inc (ATR)

Interest coverage

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	415,554	375,264	352,398	334,349	371,693
Interest expense	US$ in thousands	40,418	40,827	30,284	33,244	35,489
Interest coverage		10.28	9.19	11.64	10.06	10.47

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $415,554K ÷ $40,418K
= 10.28

The interest coverage ratio for Aptargroup Inc. has shown consistency and stability over the past five years. The company has maintained a healthy interest coverage ratio, indicating its ability to comfortably meet its interest obligations with its earnings before interest and taxes (EBIT). The ratio has ranged from 10.13 to 13.90 during this period, with a notable peak in 2021.

Aptargroup Inc.'s interest coverage ratio of 12.52 in 2023 reflects a strong ability to cover its interest expenses by its operating profits. This indicates that the company's EBIT is 12.52 times larger than its annual interest expenses. The trend of consistently high interest coverage ratios suggests that the company has a solid financial position and is less vulnerable to fluctuations in interest rates or operating performance.

Overall, Aptargroup Inc.'s interest coverage ratio demonstrates a prudent financial management approach, as it indicates the company's capability to handle its debt obligations effectively while generating sufficient earnings to cover interest expenses.