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

Company name
Symbol
Interest coverage
Ball Corporation
BALL
2.63
Crown Holdings Inc
CCK
2.54
Silgan Holdings Inc
SLGN
3.44