Berry Global Group Inc (BERY)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 4.60 | 5.16 | 5.31 | 5.62 | 7.98 |
Based on the solvency ratios provided for Berry Global Group Inc from September 30, 2020, to September 30, 2024, we can see that the company has consistently maintained a debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio of 0.00 over the five-year period. This indicates that the company has not taken on any long-term debt relative to its total assets, capital, or equity during this time frame.
However, the financial leverage ratio has fluctuated over the years, starting at 7.98 as of September 30, 2020, and decreasing to 4.60 as of September 30, 2024. The financial leverage ratio measures the proportion of a company's assets that are financed with debt rather than equity. A higher financial leverage ratio indicates higher financial risk, as more debt is being used to finance the company's operations.
The decreasing trend in Berry Global Group Inc's financial leverage ratio over the five-year period suggests that the company has reduced its reliance on debt financing and has improved its financial stability. This could be a positive indicator of the company's ability to manage its debts effectively and operate with lower financial risk.
Overall, the company's consistent low debt-to-assets, debt-to-capital, and debt-to-equity ratios coupled with the decreasing financial leverage ratio demonstrate a solid financial position and prudent debt management practices by Berry Global Group Inc over the years analyzed.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 3.01 | 1,079.00 | 621.00 | 646.00 | 393.00 |
The interest coverage ratio for Berry Global Group Inc has shown significant fluctuations over the past five years. In 2024, the interest coverage ratio stood at 3.01, indicating that the company's operating income was able to cover its interest expenses approximately three times over. However, in 2023, the interest coverage ratio spiked unexpectedly to 1,079.00, which seems like an outlier or irregularity in the data. This may be due to particular circumstances like one-time gains or losses affecting the income statement.
In 2022 and 2021, Berry Global Group Inc maintained healthy interest coverage ratios of 621.00 and 646.00, respectively, demonstrating the company's ability to comfortably meet its interest obligations. The interest coverage ratio further improved in 2020 to 393.00, indicating a positive trend in the company's ability to service its debt.
Overall, while the interest coverage ratio for Berry Global Group Inc has shown some inconsistency, it is important to consider the context and potential anomalies in the data to accurately assess the company's financial health and its ability to cover interest payments.