Devon Energy Corporation (DVN)
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 | 4,062,000 | 4,972,000 | 8,134,000 | 3,277,000 | -2,957,000 |
| Interest expense | US$ in thousands | 401,000 | 384,000 | 381,000 | 399,000 | 270,000 |
| Interest coverage | 10.13 | 12.95 | 21.35 | 8.21 | -10.95 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,062,000K ÷ $401,000K
= 10.13
The interest coverage ratio for Devon Energy Corporation has shown significant fluctuations over the past five years. In December 2020, the ratio was negative at -10.95, indicating the company was not generating enough operating income to cover its interest expenses. However, there was a substantial improvement in December 2021, with the ratio increasing to 8.21, suggesting a better ability to meet interest obligations.
By December 2022, the interest coverage ratio further improved to 21.35, indicating a significant increase in the company's ability to pay its interest expenses with operating income. However, in December 2023, the ratio decreased to 12.95, potentially indicating a slight decline in the company's ability to cover interest costs compared to the previous year.
In the most recent data available, by December 2024, the interest coverage ratio stood at 10.13, which still portrays a relatively strong ability to meet interest obligations, though it was slightly lower compared to the previous year. Overall, the trend in the interest coverage ratio for Devon Energy Corporation shows some volatility but generally demonstrates an improving ability to cover interest expenses with operating income.
Peer comparison
Dec 31, 2024