Ball (BALL) Interest Coverage

: 3.60 (As of Dec. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Ball's Operating Income for the three months ended in Dec. 2023 was $392 Mil. Ball's Interest Expense for the three months ended in Dec. 2023 was $-109 Mil. Ball's interest coverage for the quarter that ended in Dec. 2023 was 3.60. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Ball's Interest Coverage or its related term are showing as below:

BALL' s Interest Coverage Range Over the Past 10 Years
Min: 2.37 Med: 3.68 Max: 5.06
Current: 3.11

BALL's Interest Coverage is ranked worse than
73.08% of 312 companies
in the Packaging & Containers industry
Industry Median: 7.215 vs BALL: 3.11

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ball Interest Coverage Historical Data

The historical data trend for Ball's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Ball Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

3.63

4.00

5.06

3.89

3.11

Ball Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																2.11	3.07	2.74	3.05	3.60

Competitive Comparison

For the Packaging & Containers subindustry, Ball's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Ball Interest Coverage Distribution

For the Packaging & Containers industry and Consumer Cyclical sector, Ball's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Ball's Interest Coverage falls into.

Ball Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Ball's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Ball's Interest Expense was $-459 Mil. Its Operating Income was $1,426 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,504 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	1426	/	-459
	=	3.11

Ball's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Ball's Interest Expense was $-109 Mil. Its Operating Income was $392 Mil. And its Long-Term Debt & Capital Lease Obligation was $7,504 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	392	/	-109
	=	3.60

The higher the ratio, the stronger the company's Financial Strength is.

Ball (NYSE:BALL) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Ball Interest Coverage Related Terms

Thank you for viewing the detailed overview of Ball's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Ball (BALL) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Consumer Cyclical » Packaging & Containers » Ball Corp (NYSE:BALL) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

BL8:Germany

Address

9200 West 108th Circle, Westminster, CO, USA, 80021

Website

https://www.ball.com

Ball is the world's largest metal can manufacturer with market share over 40% in its three main regions (North America, Europe, and South America). The company is focused on increasing capacity amid a wave of new developed-market demand, while also investing in faster-growing emerging-market economies. Ball maintains a small presence in the U.S. defense industry through its aerospace segment. Ball spun-off its glass jar business in 1993 and is now owned by Newell. The company reports four segments—beverage packaging, North and Central America (44% of revenue), beverage packaging, EMEA (25%), beverage packaging, South America (14%), aerospace (14%)—and it generated $15.3 billion in revenue in 2022.

Executives

Ronald J. Lewis	officer: SR VP & COO	C/O COCA-COLA ENTERPRISES, 2500 WINDY RIDGE PARKWAY, NW, 14TH FLOOR, ATLANTA GA 30339
Howard H Yu	officer: E.V.P and C.F.O	250 S. KRAEMER BLVD., BREA CA 92821
Hannah S. Lim	officer: SVP, CLO & CORP SEC	2135 WEST MAPLE ROAD, TROY MI 48084
Deron Goodwin	officer: Vice President & Treasurer	9200 W. 108TH CIRCLE, WESTMINSTER CO 80021
David A Kaufman	officer: President, Ball Aerospace	9200 W. 108TH CIRCLE, WESTMINSTER CO 80021
John A Hayes	officer: VP, CORP STR, MKTG & PROD DEV	C/O BALL CORP, 10 LONGS PEAK DR, BROOMFIELD CO 80021-2510
Daniel William Fisher	officer: Sr VP & COO Global Bev Pkg	2526 SPRUCE MEADOWS DRIVE, BROOMFIELD CO 80023
Cynthia Niekamp	director	PPG INDUSTRIES, INC., ONE PPG PLACE, PITTSBURGH PA 15272
Betty J. Sapp	director	C/O BALL CORPORATION, 10 LONGS PEAK DRIVE, BROOMFIELD CO 80021-2510
Stacey J. Panayiotou	officer: SVP and CHRO	9200 W. 108TH CIRCLE, WESTMINSTER CO 80021
Nate C Carey	officer: Vice President & Controller	10 LONGS PEAK DRIVE, BROOMFIELD CO 80021
Dune Ives	director	9200 W. 108TH CIRCLE, WESTMINSTER CO 80021
Pedro Henrique Mariani	director	10 LONGS PEAK DRIVE, BROOMFIELD CO 80021
Michael J Cave	director	C/O ESTERLINE TECHNOLOGIES CORP, 500 108TH AVE NE, SUITE 1500, BELLEVUE WA 98004
Georgia R Nelson	director	C/O TOWER AUTOMOTIVE INC, 27175 HAGGERTY ROAD, NOVI MI 48377-3626