EOG Resources Inc (EOG)
Interest coverage
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 8,370,000 | 9,278,000 | 9,708,000 | 9,533,000 | 9,837,000 | 10,120,000 | 11,175,000 | 12,057,000 | 9,966,000 | 9,650,000 | 7,463,000 | 5,729,000 | 6,111,000 | 4,297,704 | 2,975,385 | 775,515 | 273,970 | 575,306 | 1,249,107 | 3,419,247 |
| Interest expense (ttm) | US$ in thousands | 138,000 | 135,000 | 140,000 | 139,000 | 148,000 | 155,000 | 160,000 | 173,000 | 179,000 | 175,000 | 182,000 | 179,000 | 178,000 | 193,121 | 198,363 | 207,576 | 205,266 | 192,840 | 179,218 | 174,913 |
| Interest coverage | 60.65 | 68.73 | 69.34 | 68.58 | 66.47 | 65.29 | 69.84 | 69.69 | 55.68 | 55.14 | 41.01 | 32.01 | 34.33 | 22.25 | 15.00 | 3.74 | 1.33 | 2.98 | 6.97 | 19.55 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $8,370,000K ÷ $138,000K
= 60.65
EOG Resources Inc's interest coverage ratio has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The interest coverage ratio measures the company's ability to meet its interest payments on outstanding debt.
Starting at a healthy level of 19.55 in March 2020, the interest coverage ratio decreased to 6.97 in June 2020, indicating a decline in the company's ability to cover its interest expense. This downward trend continued with ratios of 2.98 in September 2020 and 1.33 in December 2020, which may raise concerns about EOG Resources' ability to meet its debt obligations.
However, the company's interest coverage ratio improved significantly in the subsequent quarters, reaching 69.84 in June 2023. This indicates a strong ability to cover interest payments, reflecting potential improvements in the company's financial performance and profitability.
Overall, the interest coverage ratio for EOG Resources Inc has shown variability over time, indicating fluctuations in the company's financial health and ability to service its debt. An upward trend in the ratio suggests improved capacity to meet interest obligations, while a declining trend may raise concerns about the company's financial stability.
Peer comparison
Dec 31, 2024