Sealed Air Corporation (SEE)
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 | 695,000 | 891,900 | 899,600 | 819,400 | 523,700 |
| Interest expense | US$ in thousands | 263,000 | 162,300 | 167,800 | 174,400 | 184,100 |
| Interest coverage | 2.64 | 5.50 | 5.36 | 4.70 | 2.84 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $695,000K ÷ $263,000K
= 2.64
Sealed Air Corp.'s interest coverage ratio has shown a varying trend over the past five years. The interest coverage ratio decreased from 5.18 in 2021 to 3.12 in 2023, indicating a declining ability to cover interest expenses from operating profits. However, it is noteworthy that the interest coverage ratio remained above 1 in each year, suggesting that the company generated enough operating income to cover its interest expenses.
The peak in the interest coverage ratio was observed in 2022 at 5.86, reflecting a strong ability to meet interest obligations during that period. The overall trend indicates some fluctuation in Sealed Air Corp.'s ability to cover interest payments, with improvements in some years and declines in others. Investors and creditors may view the fluctuating trend as a sign of variability in the company's ability to service its debt obligations from operating income.
Peer comparison
Dec 31, 2023