EOG Resources Inc (EOG)
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 | 8,356,000 | 9,837,000 | 10,080,000 | 6,111,000 | -17,088 |
| Interest expense | US$ in thousands | 138,000 | 148,000 | 179,000 | 178,000 | 205,266 |
| Interest coverage | 60.55 | 66.47 | 56.31 | 34.33 | -0.08 |
December 31, 2024 calculation
Interest coverage = EBIT ÷ Interest expense
= $8,356,000K ÷ $138,000K
= 60.55
EOG Resources Inc's interest coverage has shown significant improvement over the years. From a negative value in December 31, 2020, indicating a potential inability to cover interest expenses with operating income, the company has made a remarkable turnaround. As of December 31, 2024, EOG Resources Inc's interest coverage ratio stands at 60.55, suggesting that the company's operating income is more than sufficient to cover its interest obligations, with a comfortable margin of safety. This trend indicates the company's improved financial stability and ability to service its debt obligations effectively.
Peer comparison
Dec 31, 2024