Chesapeake Energy Corp (CHK)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 3,221,000 | 3,811,000 | 969,000 | -9,422,000 | 12,000 |
| Interest expense | US$ in thousands | 104,000 | 160,000 | 73,000 | 331,000 | 651,000 |
| Interest coverage | 30.97 | 23.82 | 13.27 | -28.47 | 0.02 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $3,221,000K ÷ $104,000K
= 30.97
The interest coverage ratio for Chesapeake Energy Corp has improved over the years. The ratio was 30.97 in 2023, reflecting the company's ability to cover its interest expenses 30.97 times with its operating income. This is a significant increase from 2022 when the ratio was 23.82. In 2021, the interest coverage ratio was 13.27, indicating an improvement from the negative ratio in 2020. The company struggled in 2020 with an interest coverage ratio of -28.47, which means the company's operating income was not sufficient to cover its interest expenses. The ratio improved slightly to 0.02 in 2019. Overall, the trend shows a positive improvement in Chesapeake Energy Corp's ability to cover its interest expenses with its operating income over the years.
Peer comparison
Dec 31, 2023