Comstock Resources Inc (CRK)

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	415,230	1,573,040	-11,837	173,202	286,233
Interest expense	US$ in thousands	169,018	171,092	218,485	234,829	161,541
Interest coverage		2.46	9.19	-0.05	0.74	1.77

December 31, 2023 calculation

Interest coverage = EBIT ÷ Interest expense
= $415,230K ÷ $169,018K
= 2.46

Comstock Resources, Inc.'s interest coverage ratio has fluctuated significantly over the past five years. In 2023, the interest coverage ratio is relatively low at 1.34, indicating that the company's operating income is only sufficient to cover its interest expenses 1.34 times over. This suggests a decrease in the company's ability to meet its interest obligations compared to the prior year.

The peak performance in terms of interest coverage was observed in 2022 with a ratio of 13.33, showing a substantial improvement in the company's ability to meet interest expenses. However, the ratio dropped in 2023.

In 2021, the interest coverage ratio stood at 4.86, reflecting a moderate level of coverage that improved from the lower coverage observed in 2020 at 0.69. The significant increase in 2021 suggests that the company's operating income was almost 5 times higher than its interest expenses.

In 2019, the interest coverage ratio was 1.70, indicating that the company's operating income was sufficient to cover its interest expenses 1.70 times over. Overall, the fluctuation in Comstock Resources, Inc.'s interest coverage ratio over the years highlights the importance of monitoring the company's ability to meet its debt obligations and manage financial risk.