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.