Avient Corp (AVNT)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 330,400 | 202,600 | 246,100 | 308,600 | 220,800 |
| Interest expense | US$ in thousands | 105,600 | 115,300 | 119,800 | 75,300 | 74,600 |
| Interest coverage | 3.13 | 1.76 | 2.05 | 4.10 | 2.96 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $330,400K ÷ $105,600K
= 3.13
The interest coverage ratio for Avient Corp has fluctuated over the past five years. In December 31, 2020, the ratio was 2.96, indicating that the company generated almost 3 times the earnings necessary to cover its interest expenses. The ratio improved to 4.10 by December 31, 2021, suggesting a stronger ability to meet interest obligations. However, the ratio declined to 2.05 in December 31, 2022, possibly indicating increased financial leverage or lower earnings. By December 31, 2023, the ratio further decreased to 1.76, raising concerns about the company's ability to cover interest payments. Nonetheless, there was a slight improvement to 3.13 by December 31, 2024. Overall, the trend in interest coverage for Avient Corp shows some volatility, with periods of improvement and decline, signaling the need for continuous monitoring of the company's financial health.
Peer comparison
Dec 31, 2024