Sealed Air Corporation (SEE)
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 | 746,400 | 712,900 | 962,400 | 874,100 | 817,200 |
| Interest expense | US$ in thousands | 288,000 | 283,200 | 162,300 | 167,800 | 174,400 |
| Interest coverage | 2.59 | 2.52 | 5.93 | 5.21 | 4.69 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $746,400K ÷ $288,000K
= 2.59
Based on the data provided, Sealed Air Corporation's interest coverage ratio has shown some fluctuations over the past five years. The interest coverage ratio measures the company's ability to meet its interest obligations with its operating income.
In 2020, the interest coverage ratio was 4.69, indicating that the company's operating income was able to cover its interest expenses almost 4.7 times. This improved in 2021 to 5.21 and further increased to 5.93 in 2022, suggesting a strengthening ability to cover interest payments.
However, there was a significant decline in the interest coverage ratio in 2023 to 2.52, indicating that the company's operating income may have been less able to cover its interest expenses during that period. This trend continued in 2024 with an interest coverage ratio of 2.59, suggesting ongoing challenges in meeting interest obligations.
Overall, while the interest coverage has shown fluctuations, it is essential for Sealed Air Corporation to closely monitor and manage its interest coverage ratio to ensure it maintains a healthy level of operating income relative to its interest expenses.
Peer comparison
Dec 31, 2024