Coterra Energy Inc (CTRA)
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 | 2,201,000 | 5,279,000 | 1,564,000 | 291,000 | 956,000 |
| Interest expense | US$ in thousands | 73,000 | 80,000 | 62,000 | 49,000 | 3,966 |
| Interest coverage | 30.15 | 65.99 | 25.23 | 5.94 | 241.05 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $2,201,000K ÷ $73,000K
= 30.15
The interest coverage ratio of Coterra Energy Inc has exhibited fluctuations over the past five years. The ratio increased from 17.42 in 2019 to 61.20 in 2023, indicating a significant improvement in the company's ability to cover its interest expenses with its operating income. This rise suggests that Coterra Energy Inc's earnings are more than sufficient to meet its interest obligations. The company's interest coverage ratio was comparatively lower in the intervening years, reaching its lowest point at 5.47 in 2020, signaling a period of potential financial stress. Overall, the increasing trend in the interest coverage ratio reflects a positive financial position for Coterra Energy Inc in recent years.
Peer comparison
Dec 31, 2023