Silgan Holdings Inc (SLGN)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 573,692 | 579,400 | 593,145 | 588,835 | 597,060 | 556,836 | 575,731 | 589,755 | 600,438 | 647,538 | 596,045 | 590,982 | 573,416 | 550,194 | 555,084 | 532,222 | 507,577 | 474,050 | 431,459 | 369,053 |
| Interest expense (ttm) | US$ in thousands | 166,369 | 164,361 | 169,790 | 175,247 | 173,400 | 165,500 | 151,900 | 133,800 | 126,300 | 120,300 | 113,600 | 111,300 | 108,400 | 106,600 | 107,300 | 106,700 | 103,700 | 100,300 | 99,300 | 101,900 |
| Interest coverage | 3.45 | 3.53 | 3.49 | 3.36 | 3.44 | 3.36 | 3.79 | 4.41 | 4.75 | 5.38 | 5.25 | 5.31 | 5.29 | 5.16 | 5.17 | 4.99 | 4.89 | 4.73 | 4.35 | 3.62 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $573,692K ÷ $166,369K
= 3.45
The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt obligations. The trend analysis of Silgan Holdings Inc's interest coverage ratio over the periods from March 31, 2020, to December 31, 2024, shows a generally stable performance with some fluctuations.
The interest coverage ratio started at 3.62 on March 31, 2020, improved steadily to reach a peak of 5.38 on September 30, 2022. However, the ratio declined afterwards, dropping to 3.36 on March 31, 2023. The ratio showed some recovery but remained below the earlier highs, with periodic fluctuations between 3.36 and 5.31.
Overall, Silgan Holdings Inc's interest coverage ratio indicates that the company has generally been able to comfortably cover its interest expenses with its operating income. However, the fluctuating trend in the ratio suggests some variability in the company's ability to service its debt obligations over the analyzed periods. Further monitoring of the interest coverage ratio would be advisable to assess the company's financial health and ability to manage its debt effectively.
Peer comparison
Dec 31, 2024