Berry Global Group Inc (BERY)
Interest coverage
| 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 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 974,000 | 770,000 | 771,000 |
| Interest expense (ttm) | US$ in thousands | 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 | 329,000 | 265,000 | 261,000 |
| Interest coverage | 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 | 2.96 | 2.91 | 2.95 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,026,000K ÷ $307,000K
= 3.34
The interest coverage ratio for Berry Global Group Inc has shown fluctuation over the past few quarters, with a general upward trend observed. The ratio measures the company's ability to cover its interest expenses with operating income. A higher interest coverage ratio indicates that the company is more capable of meeting its interest obligations.
In recent quarters, Berry Global Group Inc has demonstrated an improving ability to cover its interest expenses, with ratios generally above 3. A notable increase in the interest coverage ratio was seen in the last quarter of 2020 and the first quarter of 2021, indicating a significant improvement in the company's ability to pay interest expenses.
However, it is important to note the extraordinary spike in the interest coverage ratio in the third quarter of 2020, which reached 393. This abnormal value may be due to specific events or accounting adjustments that impacted the calculation of the ratio and should be investigated further.
Overall, the gradual improvement in Berry Global Group Inc's interest coverage ratio reflects positively on the company's financial health and ability to service its debt obligations. Investors and stakeholders may view this trend favorably as it suggests a lower risk of default on interest payments.
Peer comparison
Dec 31, 2023