Silgan Holdings Inc (SLGN)
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 | 595,436 | 550,455 | 575,774 | 589,798 | 600,481 | 647,542 | 596,049 | 590,986 | 574,741 | 551,515 | 557,631 | 535,911 | 510,905 | 477,378 | 434,364 | 371,729 | 357,811 | 363,706 | 371,142 | 404,167 |
| Interest expense (ttm) | US$ in thousands | 173,315 | 165,412 | 151,891 | 133,759 | 126,342 | 120,312 | 113,608 | 111,354 | 108,428 | 106,644 | 107,330 | 106,761 | 103,827 | 100,453 | 99,495 | 102,059 | 105,673 | 109,975 | 111,407 | 112,928 |
| Interest coverage | 3.44 | 3.33 | 3.79 | 4.41 | 4.75 | 5.38 | 5.25 | 5.31 | 5.30 | 5.17 | 5.20 | 5.02 | 4.92 | 4.75 | 4.37 | 3.64 | 3.39 | 3.31 | 3.33 | 3.58 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $595,436K ÷ $173,315K
= 3.44
Interest coverage measures a company's ability to meet its interest expenses with its operating income. In the case of Silgan Holdings Inc., the interest coverage ratios have been relatively stable over the past eight quarters, ranging from 3.51 to 5.09.
The trend shows a slight decline in interest coverage from Q4 2022 to Q1 2023, followed by a gradual increase in the subsequent quarters. This indicates that Silgan Holdings has been able to comfortably cover its interest payments in recent quarters, with a generally healthy margin of safety.
A consistent interest coverage ratio above 1 indicates that the company's operating income is sufficient to cover its interest expenses, which is a positive sign for investors and lenders. Silgan Holdings Inc. appears to have a solid financial position based on its interest coverage ratios in the provided data.
Peer comparison
Dec 31, 2023