Crown Holdings Inc (CCK)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,108,000 | 1,254,000 | -364,000 | 1,068,000 | 1,013,000 |
| Interest expense | US$ in thousands | 436,000 | 284,000 | 253,000 | 290,000 | 367,000 |
| Interest coverage | 2.54 | 4.42 | -1.44 | 3.68 | 2.76 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,108,000K ÷ $436,000K
= 2.54
Crown Holdings, Inc.'s interest coverage has shown a fluctuating trend over the past five years. The company's ability to cover its interest payments has been adequate, with the ratio ranging from 3.32 in 2019 to 5.48 in 2021. However, there was a slight decline in 2023, where the interest coverage ratio dropped to 3.65. This decrease indicates that Crown Holdings may have had slightly less earnings available to cover its interest expenses in 2023 compared to the previous years. Overall, Crown Holdings has maintained a satisfactory interest coverage ratio over the years, although investors may want to monitor the trend in the coming years for any significant changes that could impact the company's financial stability.
Peer comparison
Dec 31, 2023