Berry Global Group Inc (BERY)
Interest coverage
| 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 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 937,000 | 969,000 | 933,000 | 1,026,000 | 1,079,000 | 1,114,000 | 1,183,000 | 1,223,000 | 1,242,000 | 1,218,000 | 1,225,000 | 1,217,000 | 1,292,000 | 1,329,000 | 1,333,000 | 1,284,000 | 1,179,000 | 1,228,000 | 1,096,000 | 997,000 |
| Interest expense (ttm) | US$ in thousands | 311,000 | 303,000 | 304,000 | 307,000 | 235,000 | 231,000 | 223,000 | 215,000 | 216,000 | 221,000 | 227,000 | 240,000 | 336,000 | 257,000 | 182,000 | 99,000 | 3,000 | 131,000 | 201,000 | 266,000 |
| Interest coverage | 3.01 | 3.20 | 3.07 | 3.34 | 4.59 | 4.82 | 5.30 | 5.69 | 5.75 | 5.51 | 5.40 | 5.07 | 3.85 | 5.17 | 7.32 | 12.97 | 393.00 | 9.37 | 5.45 | 3.75 |
September 30, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $937,000K ÷ $311,000K
= 3.01
Interest coverage ratio is a crucial financial metric that indicates a company's ability to meet its interest obligations on outstanding debt. A higher interest coverage ratio suggests a stronger ability to cover interest payments from operating income.
Analyzing the interest coverage ratio of Berry Global Group Inc over the past 20 quarters reveals fluctuations in its ability to cover interest expenses. The ratio has ranged from 3.01 to 393.00, indicating significant variation in the company's ability to meet its interest obligations.
In recent quarters, the interest coverage ratio has generally been above 3, which is considered a healthy level. This indicates that Berry Global Group Inc has generated sufficient operating income to comfortably cover its interest expenses. However, the ratio experienced a sharp increase to 393.00 in the fourth quarter of 2019, which may be attributed to specific one-time or anomalous factors.
Overall, the trend in Berry Global Group Inc's interest coverage ratio demonstrates a generally sound financial position regarding its ability to meet interest payments. However, analysts should further investigate the significant spike in the ratio in the fourth quarter of 2019 to understand the underlying reasons for such an anomaly.
Peer comparison
Sep 30, 2024