Chevron Corp (CVX)

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	30,159,000	36,405,000	42,512,000	50,592,000	50,161,000	47,317,000	40,612,000	29,168,000	22,350,000	14,445,000	6,342,000	-8,671,000	-6,700,000	-14,122,000	-9,998,000	6,568,000	6,432,000	19,851,000	21,474,000	20,435,000
Interest expense (ttm)	US$ in thousands	617,000	586,000	600,000	609,000	630,000	611,000	657,000	713,000	775,000	794,000	784,000	771,000	735,000	695,000	728,000	754,000	817,000	983,000	968,000	987,000
Interest coverage		48.88	62.12	70.85	83.07	79.62	77.44	61.81	40.91	28.84	18.19	8.09	-11.25	-9.12	-20.32	-13.73	8.71	7.87	20.19	22.18	20.70

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $30,159,000K ÷ $617,000K
= 48.88

Chevron Corp.'s interest coverage ratio has shown a generally positive trend over the past eight quarters, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio has consistently been above 1, suggesting that Chevron Corp. is generating sufficient operating income to cover its interest expenses. The trend also indicates an improving financial health, as evidenced by the increasing ratio values over the quarters. This indicates a strengthening ability to service debt and may signal a reduced risk of financial distress. Overall, Chevron Corp.'s interest coverage ratio reflects a strong financial performance and ability to manage its debt obligations effectively.