AptarGroup Inc (ATR)
Interest coverage
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 415,554 | 407,750 | 382,457 | 363,331 | 375,264 | 379,811 | 359,684 | 339,690 | 352,398 | 344,968 | 368,328 | 357,335 | 337,479 | 331,399 | 323,673 | 363,059 | 371,693 | 353,465 | 324,333 | 295,407 |
| Interest expense (ttm) | US$ in thousands | 40,418 | 40,059 | 39,831 | 42,125 | 40,827 | 38,351 | 36,606 | 31,799 | 30,284 | 29,872 | 30,712 | 32,271 | 33,244 | 34,594 | 34,641 | 34,663 | 35,489 | 34,740 | 34,577 | 33,785 |
| Interest coverage | 10.28 | 10.18 | 9.60 | 8.63 | 9.19 | 9.90 | 9.83 | 10.68 | 11.64 | 11.55 | 11.99 | 11.07 | 10.15 | 9.58 | 9.34 | 10.47 | 10.47 | 10.17 | 9.38 | 8.74 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $415,554K ÷ $40,418K
= 10.28
The interest coverage ratio for Aptargroup Inc. has exhibited positive trends over the last eight quarters, indicating the company's ability to meet its interest obligations with its operating income. The ratio has generally remained above 10x, which is considered favorable as it shows the company generates sufficient earnings to cover its interest expenses multiple times over.
The interest coverage ratio peaked at 13.18 in Q1 2022 and has since fluctuated in the range of 9.83 to 12.52. These fluctuations may be attributed to changes in the company's earnings and interest expenses during the respective quarters. Overall, Aptargroup Inc. appears to have a strong financial position with consistently healthy interest coverage ratios, providing a buffer against potential financial challenges related to servicing its debt in the future.
Peer comparison
Dec 31, 2023