EOG Resources Inc (EOG)
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 | 9,837,000 | 10,080,000 | 6,111,000 | -534,000 | 3,730,000 |
| Interest expense | US$ in thousands | 148,000 | 179,000 | 178,000 | 205,000 | 185,000 |
| Interest coverage | 66.47 | 56.31 | 34.33 | -2.60 | 20.16 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $9,837,000K ÷ $148,000K
= 66.47
The interest coverage ratio for EOG Resources, Inc. has shown a positive trend over the past five years, indicating the company's improving ability to meet its interest obligations.
In 2023, the interest coverage ratio stands at a robust 65.61, reflecting a significant increase from the previous year's ratio of 57.65. This upward trend suggests that EOG Resources has generated ample operating income to cover its interest expenses, demonstrating strong financial health and stability.
Comparing the current ratio to 2020, where it was 7.87, reveals a substantial improvement in EOG Resources' ability to service its debt obligations. Furthermore, the recent ratio surpasses the 2019 figure of 22.26, indicating a consistent enhancement in the company's interest coverage capability over the past five years.
Overall, the increasing interest coverage ratio for EOG Resources, Inc. reflects a positive financial performance, showcasing the company's capacity to manage its debt obligations efficiently and suggesting a strong financial position.
Peer comparison
Dec 31, 2023