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Pactiv Evergreen Interest Coverage

: 0.83 (As of Jun. 2021)
View and export this data going back to 2020. Start your Free Trial

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. Pactiv Evergreen's Operating Income for the three months ended in Jun. 2021 was $35 Mil. Pactiv Evergreen's Interest Expense for the three months ended in Jun. 2021 was $-42 Mil. Pactiv Evergreen's interest coverage for the quarter that ended in Jun. 2021 was 0.83. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. Pactiv Evergreen Incs earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

NAS:PTVE' s Interest Coverage Range Over the Past 10 Years
Min: 0.6   Med: 0.96   Max: 1.98
Current: 0.6

0.6
1.98

NAS:PTVE's Interest Coverage is ranked lower than
99.99% of the 25 Companies
in the Packaging & Containers industry.

( Industry Median: 3.47 vs. NAS:PTVE: 0.60 )

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


Pactiv Evergreen Interest Coverage Historical Data

The historical data trend for Pactiv Evergreen'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.

* Premium members only.

Pactiv Evergreen Annual Data
Trend Dec13 Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20
Interest Coverage
Premium Member Only Premium Member Only Premium Member Only 1.40 1.98 1.04 0.87 0.69

Pactiv Evergreen Quarterly Data
Sep16 Dec16 Mar17 Jun17 Sep17 Dec17 Mar18 Jun18 Sep18 Dec18 Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21
Interest Coverage Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 0.65 0.35 1.62 - 0.83

Competitive Comparison

For the Packaging & Containers subindustry, Pactiv Evergreen'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.

   

Pactiv Evergreen Interest Coverage Distribution

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

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



Pactiv Evergreen 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.


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

Pactiv Evergreen's Interest Coverage for the fiscal year that ended in Dec. 2020 is calculated as

Here, for the fiscal year that ended in Dec. 2020, Pactiv Evergreen's Interest Expense was $-293 Mil. Its Operating Income was $201 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,182 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2020 )/Interest Expense (A: Dec. 2020 )
=-1*201/-293
=0.69

Pactiv Evergreen's Interest Coverage for the quarter that ended in Jun. 2021 is calculated as

Here, for the three months ended in Jun. 2021, Pactiv Evergreen's Interest Expense was $-42 Mil. Its Operating Income was $35 Mil. And its Long-Term Debt & Capital Lease Obligation was $4,144 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2021 )/Interest Expense (Q: Jun. 2021 )
=-1*35/-42
=0.83

* 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.

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


Pactiv Evergreen  (NAS:PTVE) 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 .


Pactiv Evergreen Interest Coverage Related Terms

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


Pactiv Evergreen Business Description

Pactiv Evergreen logo
Industry
Comparable Companies
Traded in Other Exchanges
Address
1900 W. Field Court, Lake Forest, IL, USA, 60045
Pactiv Evergreen Inc is engaged in the business of manufacturing and distributing fresh food service and food merchandising products and fresh beverage cartons. The products are supplied to food service distributors, supermarkets, grocery and healthy eating retailers, other food stores, food and beverage producers, food packers, and food processors. Its operating segment includes Foodservice; Food Merchandising and Beverage Merchandising. The company derives a majority of revenue from the Food Merchandising segment. Geographically, it derives a majority of revenue from the United States.
Executives
Rich Jonathan D director 1144 EAST MARKET STREET AKRON OH 44316-0001
Baker Leighanne G director 225 BRAE BOULEVARD PARK RIDGE NJ 07656
Thornton Felicia D director 250 PARKCENTER BLVD PO BOX 20 BOISE ID 83726
Mcgrath John T. director, officer: Chief Executive Officer 1900 W. FIELD COURT LAKE FOREST IL 60045
Hugli Allen director C/O RANK GROUP LEVEL II, 148 QUAY ST AUCKLAND Q2 00000
Rooney John P. officer: Pres, Beverage Merchandising 1900 W. FIELD COURT LAKE FOREST IL 60045
Ragen Michael officer: COO and CFO 1900 W. FIELD COURT LAKE FOREST IL 60045
Stangl Rolf director 1900 W. FIELD COURT LAKE FOREST IL 60045
Wulf Eric officer: President, Food Merchandising 1900 W. FIELD COURT LAKE FOREST IL 60045
Levenda Tim A. officer: President, Foodservice 1900 W. FIELD COURT LAKE FOREST IL 60045
Packaging Finance Ltd 10 percent owner C/O RANK GROUP LIMITED FLOOR 9, 148 QUAY STREET AUCKLAND Q2 1010
King Michael Jack director 1900 W. FIELD COURT LAKE FOREST IL 60045

Pactiv Evergreen Headlines

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