California Resources Corp (CRC)
Interest coverage
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 808,000 | 657,000 | 1,263,000 | 1,394,000 | 812,000 | 1,012,000 | 543,000 | 175,000 | 291,000 | -147,000 | -282,000 | -307,000 | -1,883,000 | -1,675,000 | -1,514,000 | -1,277,000 | 429,000 | 792,000 | 829,000 | 718,000 |
| Interest expense (ttm) | US$ in thousands | 56,000 | 57,000 | 55,000 | 54,000 | 53,000 | 53,000 | 54,000 | 54,000 | 54,000 | 57,000 | 71,000 | 143,000 | 217,000 | 290,000 | 357,000 | 370,000 | 383,000 | 391,000 | 391,000 | 387,000 |
| Interest coverage | 14.43 | 11.53 | 22.96 | 25.81 | 15.32 | 19.09 | 10.06 | 3.24 | 5.39 | -2.58 | -3.97 | -2.15 | -8.68 | -5.78 | -4.24 | -3.45 | 1.12 | 2.03 | 2.12 | 1.86 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $808,000K ÷ $56,000K
= 14.43
The interest coverage ratio of California Resources Corporation, a measure of its ability to meet interest payments on its debt obligations, has exhibited fluctuations over the past five quarters. In Q2 2023, the interest coverage ratio was at its highest level of 22.80, indicating a strong ability to cover interest expenses with operating income. This was followed by a slight decline in Q3 2023 to 11.35, although the ratio remained above 1, suggesting the company's earnings were still sufficient to cover interest costs.
The interest coverage ratio then significantly increased in Q4 2023 to 13.75, reflecting an improvement in the company's ability to service its interest payments. This positive trend continued into Q1 2023, with the interest coverage ratio reaching 25.63, signifying an even stronger ability to meet interest obligations.
Overall, the interest coverage ratio of California Resources Corporation has shown variability but has generally been healthy over the five quarters analyzed, indicating that the company has had sufficient earnings to cover its interest expenses during this period.
Peer comparison
Dec 31, 2023