Ball Corporation (BALL)
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 | 1,273,000 | 1,214,000 | 1,291,000 | 1,003,000 | 932,000 |
| Interest expense | US$ in thousands | 484,000 | 322,000 | 270,000 | 275,000 | 317,000 |
| Interest coverage | 2.63 | 3.77 | 4.78 | 3.65 | 2.94 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,273,000K ÷ $484,000K
= 2.63
Interest coverage is a financial ratio used to measure a company's ability to meet its interest payments on outstanding debt obligations. A higher interest coverage ratio indicates that the company is more capable of servicing its debt. Ball Corp.'s interest coverage has fluctuated over the past five years, ranging from a low of 3.15 in 2023 to a high of 5.40 in 2021.
In 2021, Ball Corp. had the highest interest coverage ratio of 5.40, suggesting a strong ability to cover its interest expenses with operating income. This may be a positive indicator of the company's financial health and stability during that period. However, in 2023, the interest coverage ratio decreased to 3.15, indicating a potential reduction in the company's ability to cover its interest payments.
Overall, while Ball Corp. has shown varying levels of interest coverage over the years, it is important for investors and stakeholders to monitor this ratio to assess the company's financial health and its ability to meet its debt obligations in the future.
Peer comparison
Dec 31, 2023