Ball Corporation (BALL)
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 | 837,000 | 1,067,000 | 1,096,000 | 1,148,000 | 1,218,000 | 1,090,000 | 1,294,000 | 1,329,000 | 1,673,000 | 1,870,000 | 1,575,000 | 1,590,000 | 1,279,000 | 1,201,000 | 1,337,000 | 1,139,000 | 954,000 | 865,000 | 695,000 | 827,000 |
| Interest expense (ttm) | US$ in thousands | 293,000 | 337,000 | 392,000 | 439,000 | 459,000 | 446,000 | 403,000 | 356,000 | 312,000 | 285,000 | 274,000 | 272,000 | 270,000 | 270,000 | 270,000 | 271,000 | 275,000 | 286,000 | 297,000 | 311,000 |
| Interest coverage | 2.86 | 3.17 | 2.80 | 2.62 | 2.65 | 2.44 | 3.21 | 3.73 | 5.36 | 6.56 | 5.75 | 5.85 | 4.74 | 4.45 | 4.95 | 4.20 | 3.47 | 3.02 | 2.34 | 2.66 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $837,000K ÷ $293,000K
= 2.86
The interest coverage ratio of Ball Corporation has shown some fluctuations over the years, indicating the company's ability to cover its interest expenses with its operating income.
From March 2020 to June 2020, the interest coverage ratio decreased from 2.66 to 2.34, suggesting a slight weakening in the company's ability to cover its interest expenses. However, from September 2020 to December 2020, the ratio improved to 3.02 and further increased to 3.47 by the end of December 2020, indicating a positive trend.
The trend of improvement continued in the following periods, with the interest coverage ratio reaching 4.20 by March 2021 and peaking at 6.56 by September 2022. This demonstrates that Ball Corporation significantly strengthened its ability to cover interest expenses during this period.
However, from March 2023 onwards, there was a decline in the interest coverage ratio, dropping to 2.62 by the end of March 2024. This downward trend may indicate a potential strain on the company's ability to cover interest payments with its operating income during this period.
Overall, although the interest coverage ratio of Ball Corporation has shown fluctuations, it is important for the company to maintain a healthy ratio to ensure it can meet its interest obligations comfortably and indicate financial stability to investors and creditors.
Peer comparison
Dec 31, 2024