ConocoPhillips (COP)
Interest coverage
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 14,780,000 | 17,351,000 | 29,283,000 | 13,838,000 | -2,082,000 |
| Interest expense | US$ in thousands | 783,000 | 1,063,000 | 1,055,000 | 1,126,000 | 1,058,000 |
| Interest coverage | 18.88 | 16.32 | 27.76 | 12.29 | -1.97 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $14,780,000K ÷ $783,000K
= 18.88
ConocoPhillips' interest coverage ratio has shown fluctuations over the years. Starting at -1.97 on December 31, 2020, the ratio improved significantly to 12.29 by December 31, 2021, indicating the company's enhanced ability to cover its interest obligations. Subsequently, the ratio continued to strengthen, reaching 27.76 on December 31, 2022, indicating a healthy financial position. However, there was a slight decline in the interest coverage ratio to 16.32 on December 31, 2023, followed by a modest increase to 18.88 on December 31, 2024. Overall, the trend suggests that ConocoPhillips has been able to efficiently meet its interest payments, although fluctuations in the ratio indicate some variability in its financial performance over the years.
Peer comparison
Dec 31, 2024