Avient Corp (AVNT)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	349,800	318,100	286,200	276,700	231,700	152,800	124,200	190,900	232,700	327,700	353,700	327,000	351,800	355,300	347,900	284,800	216,500	151,900	160,600	158,700
Interest expense (ttm)	US$ in thousands	105,600	116,600	120,000	122,800	125,000	137,900	144,900	131,700	119,800	87,900	69,600	72,900	75,300	77,100	87,800	84,500	74,600	67,200	53,000	53,000
Interest coverage		3.31	2.73	2.38	2.25	1.85	1.11	0.86	1.45	1.94	3.73	5.08	4.49	4.67	4.61	3.96	3.37	2.90	2.26	3.03	2.99

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $349,800K ÷ $105,600K
= 3.31

Avient Corp's interest coverage ratio, which measures the company's ability to meet its interest payments on outstanding debt, has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio has generally improved from 2.99 on March 31, 2020, to 3.31 on December 31, 2024.

There were periods of strong performance, such as June 30, 2021, where the interest coverage ratio reached 3.96 and September 30, 2021, where it increased further to 4.61. However, there were also periods of lower coverage, with a notable decrease to 0.86 on June 30, 2023.

Overall, the interest coverage ratio of Avient Corp has shown some volatility but has generally been above 1, indicating that the company's earnings have been able to cover its interest obligations. It is essential for investors and creditors to monitor this ratio closely to assess the company's financial health and debt repayment capacity.