Berry Global Group Inc (BERY)
Interest coverage
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 937,000 | 1,079,000 | 1,242,000 | 1,292,000 | 1,179,000 |
| Interest expense | US$ in thousands | 311,000 | 1,000 | 2,000 | 2,000 | 3,000 |
| Interest coverage | 3.01 | 1,079.00 | 621.00 | 646.00 | 393.00 |
September 30, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $937,000K ÷ $311,000K
= 3.01
The interest coverage ratio for Berry Global Group Inc has been quite erratic and inconsistent over the past five years. In 2024, the interest coverage ratio is 3.01, indicating that the company's operating income is able to cover its interest expenses 3.01 times over.
However, the interest coverage ratio in 2023 was abnormally high at 1,079.00, which is most likely a result of an unusual accounting anomaly rather than a sustainable performance metric. In the following years (2022, 2021, and 2020), the interest coverage ratios were 621.00, 646.00, and 393.00, respectively, showing variability in the company's ability to cover its interest expenses from its operating income.
It is essential for investors and stakeholders to dig deeper into the reasons behind such inconsistencies and fluctuations in the interest coverage ratio to assess the company's financial health and stability accurately.
Peer comparison
Sep 30, 2024