EOG Resources Inc (EOG)

Interest coverage

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	9,837,000	10,168,000	11,263,000	12,172,000	10,080,000	9,716,000	7,489,000	5,728,000	6,111,000	4,054,760	2,574,760	314,760	-537,240	-146,226	693,851	2,924,121	3,730,263	4,002,849	4,675,772	4,492,882
Interest expense (ttm)	US$ in thousands	148,000	155,000	160,000	173,000	179,000	175,000	182,000	179,000	178,000	193,000	198,000	207,000	205,000	192,566	179,186	175,094	185,000	200,454	224,466	238,002
Interest coverage		66.47	65.60	70.39	70.36	56.31	55.52	41.15	32.00	34.33	21.01	13.00	1.52	-2.62	-0.76	3.87	16.70	20.16	19.97	20.83	18.88

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $9,837,000K ÷ $148,000K
= 66.47

The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt. EOG Resources, Inc. consistently maintained strong interest coverage ratios throughout the quarters presented. The company’s interest coverage ratio ranged from 34.18 to 71.09 over the past eight quarters, indicating EOG's ability to cover its interest expenses comfortably with its earnings.

The trend shows an increasing interest coverage ratio from Q1 2022 to Q2 2023, reflecting the company's improving ability to cover interest payments over time. With the interest coverage consistently above 1 (typically considered a good sign), EOG Resources appears to have sufficient earnings to meet its interest obligations.

Overall, EOG Resources, Inc.'s interest coverage ratio demonstrates financial stability and the company's ability to comfortably manage its debt obligations with its operating income.