Silgan Holdings Inc (SLGN)
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 | 595,436 | 600,481 | 574,741 | 510,905 | 357,810 |
| Interest expense | US$ in thousands | 173,315 | 126,342 | 108,428 | 103,827 | 105,674 |
| Interest coverage | 3.44 | 4.75 | 5.30 | 4.92 | 3.39 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $595,436K ÷ $173,315K
= 3.44
The interest coverage ratio of Silgan Holdings Inc. has fluctuated over the past five years, ranging from 3.51 to 4.99. The interest coverage ratio measures the company's ability to cover its interest expenses with its operating income.
In 2023, the interest coverage ratio of 3.51 indicates that Silgan Holdings Inc. generated operating income 3.51 times higher than its interest expenses. This suggests a moderate ability to meet its interest obligations.
Comparing this to prior years, we see that the interest coverage ratio was higher in 2022 and 2021 at 4.99 and 4.98, respectively, indicating a stronger ability to cover interest expenses during those periods.
While there was a slight decrease in the interest coverage ratio in 2020 (4.72) compared to 2019 (3.77), the company still demonstrated a relatively stable ability to cover its interest expenses.
Overall, Silgan Holdings Inc. has shown reasonable consistency in managing its interest obligations over the years, with fluctuations in the ratio potentially influenced by changes in operating income and interest expenses.
Peer comparison
Dec 31, 2023