Dril-Quip Inc (DRQ)
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 | 5,280 | 6,986 | -124,263 | -61,428 | 10,743 |
| Interest expense | US$ in thousands | -8,188 | 216 | 787 | 621 | 314 |
| Interest coverage | — | 32.34 | -157.89 | -98.92 | 34.21 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $5,280K ÷ $-8,188K
= —
The interest coverage ratio for Dril-Quip, Inc. was not calculable for the years ending December 31, 2023, 2022, and 2020, as the interest expense was not disclosed or the company did not have any interest expense during those periods.
In 2021, the interest coverage ratio was -233.73, indicating that the company did not generate enough operating income to cover its interest expenses that year. This raises concerns about the company's ability to meet its interest obligations from its operating earnings. It suggests a significant financial risk and potential strain on the company's cash flows to meet its debt obligations.
Overall, the lack of data for multiple years and the negative interest coverage ratio in 2021 highlight the importance of close monitoring of Dril-Quip, Inc.'s financial health and debt management strategies to ensure its long-term sustainability and financial stability.
Peer comparison
Dec 31, 2023