Graphic Packaging Holding Company (GPK)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,119,000 | 1,172,000 | 913,000 | 401,000 | 338,000 |
| Interest expense | US$ in thousands | 40,000 | 239,000 | 197,000 | 123,000 | 129,000 |
| Interest coverage | 27.98 | 4.90 | 4.63 | 3.26 | 2.62 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,119,000K ÷ $40,000K
= 27.98
The interest coverage ratio of Graphic Packaging Holding Company has shown a positive trend over the years, improving from 2.62 in 2020 to 27.98 in 2024. This indicates the company's ability to meet its interest obligations has strengthened significantly. A higher interest coverage ratio suggests that the company is generating sufficient operating income to cover its interest expenses comfortably. Graphic Packaging Holding Company's increasing interest coverage ratio reflects a healthier financial position and reduced financial risk related to its debt obligations. This improvement in the interest coverage ratio is a positive signal for investors and creditors, indicating a stronger ability to manage debt repayments and potentially pursue growth opportunities.
Peer comparison
Dec 31, 2024