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.
Peer comparison
Dec 31, 2023