Civitas Resources Inc (CIVI)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-811,681	1,399,166	1,355,250	1,227,821	1,182,194	1,096,216	1,399,987	1,836,985	1,686,052	1,537,436	1,047,120	385,241	261,431	22,031	-29,019	-35,042	44,377	85,918	111,836	196,081
Interest expense (ttm)	US$ in thousands	422,499	415,485	376,842	285,077	182,740	100,218	31,219	30,582	32,199	27,665	23,222	18,347	9,700	6,255	3,531	691	1,396	4,105	4,804	4,788
Interest coverage		-1.92	3.37	3.60	4.31	6.47	10.94	44.84	60.07	52.36	55.57	45.09	21.00	26.95	3.52	-8.22	-50.71	31.79	20.93	23.28	40.95

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-811,681K ÷ $422,499K
= -1.92

Civitas Resources Inc's interest coverage ratio has shown fluctuations over the past few years. The interest coverage ratio measures a company's ability to meet its interest payments on debt obligations.

From March 31, 2020 to June 30, 2020, the interest coverage ratio decreased from 40.95 to 23.28, indicating a potential decline in the company's ability to cover its interest expenses. However, the ratio improved to 31.79 by December 31, 2020, suggesting a better ability to honor its interest payments.

In the subsequent periods, there were fluctuations in the interest coverage ratio, with some periods showing negative values such as -50.71 in March 31, 2021, and -8.22 in June 30, 2021, indicating potential financial stress in meeting interest obligations during those periods.

The company's interest coverage ratio improved in the later periods, with values increasing to above 20, reaching a high of 60.07 on March 31, 2023. This improvement may suggest a strengthening financial position and better ability to service its debt.

Overall, while the company experienced fluctuations in its interest coverage ratio, it exhibited a general trend of improvement towards the latter periods, indicating potentially better financial health and ability to meet interest obligations.