Coterra Energy Inc (CTRA)
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 | 1,389,000 | 2,201,000 | 5,279,000 | 1,564,000 | 291,000 |
| Interest expense | US$ in thousands | -12,000 | 73,000 | 80,000 | 62,000 | 49,000 |
| Interest coverage | — | 30.15 | 65.99 | 25.23 | 5.94 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $1,389,000K ÷ $-12,000K
= —
Interest coverage ratio indicates the company's ability to meet its interest payment obligations with its operating income.
Coterra Energy Inc's interest coverage has been on an upward trend over the past few years, reflecting improving financial health and profitability.
As of December 31, 2020, the interest coverage ratio was 5.94, indicating that the company's operating income was able to cover its interest expenses almost 6 times.
Subsequently, by December 31, 2021, the interest coverage ratio significantly improved to 25.23, suggesting that the company's operating income had increased substantially relative to its interest expenses.
By December 31, 2022, the interest coverage ratio surged to 65.99, showcasing a remarkable improvement in the company's ability to cover its interest payments with operating income.
However, by December 31, 2023, the interest coverage ratio dipped to 30.15, although it remained at a relatively healthy level compared to previous years.
As of December 31, 2024, the data is unavailable (marked as "—"), so the interest coverage ratio for that period cannot be determined.
Overall, Coterra Energy Inc's interest coverage has shown a positive trend, indicating strong financial performance and a solid ability to fulfill its interest payment obligations.
Peer comparison
Dec 31, 2024