Coterra Energy Inc (CTRA)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,405,000 | 1,671,000 | 1,778,000 | 1,768,000 | 2,201,000 | 2,944,000 | 4,045,000 | 5,369,000 | 5,279,000 | 5,189,000 | 3,748,000 | 2,192,000 | 1,568,000 | 485,892 | 384,359 | 384,075 | 295,476 | 354,793 | 492,103 | 689,192 |
| Interest expense (ttm) | US$ in thousands | 11,000 | 33,000 | 54,000 | 75,000 | 73,000 | 97,000 | 100,000 | 106,000 | 110,000 | 94,000 | 84,000 | 62,709 | 42,424 | 58,190 | 48,923 | 48,965 | 49,000 | 2,981 | 3,003 | 3,627 |
| Interest coverage | 127.73 | 50.64 | 32.93 | 23.57 | 30.15 | 30.35 | 40.45 | 50.65 | 47.99 | 55.20 | 44.62 | 34.96 | 36.96 | 8.35 | 7.86 | 7.84 | 6.03 | 119.02 | 163.87 | 190.02 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,405,000K ÷ $11,000K
= 127.73
Coterra Energy Inc's interest coverage ratio, a key financial metric, has shown fluctuations over the past few years. In the first quarter of 2020, the interest coverage ratio stood at a high level of 190.02, indicating that the company generated sufficient earnings to cover its interest expenses almost 190 times. However, by the end of 2020, the interest coverage ratio had dropped significantly to 6.03, suggesting a potential strain on the company's ability to cover interest payments with its operating income.
Subsequently, in 2021, there was a slight improvement in the interest coverage ratio, reaching around 8-9 times, but still remaining relatively low. By the end of 2022, the ratio improved further to around 48-56 times, reflecting a better ability to meet interest obligations with operating profits.
However, in the following quarters of 2023 and 2024, the interest coverage ratio showed some ups and downs, ranging from 23.57 to 127.73 times. These fluctuations may indicate variability in the company's earnings and the impact on its ability to cover interest expenses adequately.
Overall, the trend in Coterra Energy Inc's interest coverage ratio shows periods of strength and weakness, highlighting the importance of monitoring the company's financial performance and its ability to manage debt obligations effectively.
Peer comparison
Dec 31, 2024