Packaging Corp of America (PKG)
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 | 1,075,200 | 1,101,700 | 1,203,400 | 1,334,800 | 1,420,600 | 1,488,300 | 1,480,800 | 1,359,600 | 1,241,400 | 1,075,000 | 931,700 | 753,200 | 724,000 | 769,800 | 823,100 | 987,400 | 1,053,700 | 1,105,300 | 1,141,000 | 1,130,200 |
| Interest expense (ttm) | US$ in thousands | 10,500 | 9,800 | 9,800 | 9,800 | 9,800 | 7,900 | 8,000 | 8,100 | 8,200 | 6,800 | 6,800 | 6,800 | 6,800 | 7,600 | 8,100 | 8,300 | 8,500 | 8,900 | 8,600 | 8,600 |
| Interest coverage | 102.40 | 112.42 | 122.80 | 136.20 | 144.96 | 188.39 | 185.10 | 167.85 | 151.39 | 158.09 | 137.01 | 110.76 | 106.47 | 101.29 | 101.62 | 118.96 | 123.96 | 124.19 | 132.67 | 131.42 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,075,200K ÷ $10,500K
= 102.40
Packaging Corp Of America has shown consistently strong interest coverage over the past eight quarters. The interest coverage ratio, which measures the company's ability to meet its interest obligations with its operating income, has been above 10 for all quarters, indicating a healthy financial position.
Specifically, in the most recent quarter of Q4 2023, the interest coverage ratio was 20.98, showing that the company's operating income was nearly 21 times its interest expenses. This level of coverage suggests that Packaging Corp Of America has a comfortable buffer to meet its interest payments.
Overall, the trend of increasing interest coverage ratios over the past year indicates a positive financial performance and stability in the company's ability to cover its interest expenses.
Peer comparison
Dec 31, 2023