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. PRO-PAC Packaging's
Operating Income
for the
six
months ended in Dec. 2024 was A$-14.2 Mil. PRO-PAC Packaging's Interest Expense for the
six
months ended in Dec. 2024 was A$-3.9 Mil.
did not have earnings to cover the interest expense.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for PRO-PAC Packaging's Interest Coverage or its related term are showing as below:
ASX:PPG's Interest Coverage is not ranked *
in the Packaging & Containers industry.
Industry Median: 6.125 * Ranked among companies with meaningful Interest Coverage only.
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 .
PRO-PAC Packaging Interest Coverage Related Terms
PRO-PAC Packaging Interest Coverage Historical Data
* Premium members only.
The historical data trend for PRO-PAC Packaging'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.
ASX:PPG vs IP, SW, AMCR: Interest Coverage Comparison
For the Packaging & Containers subindustry, PRO-PAC Packaging'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.
PRO-PAC Packaging Interest Coverage vs Packaging & Containers Industry
For the Packaging & Containers industry and Consumer Cyclical sector, PRO-PAC Packaging's Interest Coverage distribution charts can be found below:
* The bar in red indicates where PRO-PAC Packaging's Interest Coverage falls into.
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:
PRO-PAC Packaging did not have earnings to cover the interest expense.
* 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.
What does a Interest Coverage of 0 (At Loss) mean?
PRO-PAC Packaging (ASX:PPG) has a Interest Coverage of 0 (At Loss) as of Dec. 2024. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PRO-PAC Packaging and its competitors.
Is PRO-PAC Packaging's Interest Coverage too high?
PRO-PAC Packaging's current Interest Coverage is 0 (At Loss). Overall, PRO-PAC Packaging has a GF Score™ of 8/100, reflecting its overall financial health beyond just this single metric.
How does PRO-PAC Packaging's Interest Coverage compare to IP and SW?
PRO-PAC Packaging's Interest Coverage of 0 (At Loss) can be compared against companies in the Packaging & Containers industry. The industry median Interest Coverage is 6.13. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a Packaging & Containers company?
The median Interest Coverage among Packaging & Containers companies is 6.13, based on 314 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on PRO-PAC Packaging and its competitors. For the Packaging & Containers industry, the median Interest Coverage is 6.13 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. PRO-PAC Packaging's current Interest Coverage is 0 (At Loss). However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is PRO-PAC Packaging stock overvalued right now?
PRO-PAC Packaging (ASX:PPG) has a current Interest Coverage of 0 (At Loss). The current Interest Coverage is 0 (At Loss). PRO-PAC Packaging's overall GF Score™ is 8/100. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For PRO-PAC Packaging (ASX:PPG), the current Interest Coverage is 0 (At Loss) as of Dec. 2024. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
PRO-PAC Packaging Ltd is engaged in the manufacture and distribution of flexible, industrial, and rigid packaging products. The company's operating segment includes Flexibles; Specialty; and Unallocated. It generates maximum revenue from the Flexibles segment. The Flexibles packaging segment manufactures flexible packaging materials incorporating products such as stretch and shrink wrap, agricultural silage packaging, fresh produce bags, barrier and lidding films, and industrial protective films. Geographically, it derives a majority of its revenue from Australia and also has a presence in New Zealand.
8GF Score
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