Diamondback Energy Inc (FANG)
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 | 4,570,000 | 4,621,000 | 4,895,000 | 5,873,000 | 6,508,000 | 6,563,000 | 6,113,000 | 5,090,000 | 4,001,000 | 1,944,000 | -476,000 | -4,103,000 | -5,476,000 | -5,114,000 | -3,509,000 | -426,000 | 695,000 | 1,274,000 | 1,193,000 | 1,063,000 |
| Interest expense (ttm) | US$ in thousands | 93,000 | 93,000 | 177,000 | 165,000 | 159,000 | 151,000 | 165,000 | 183,000 | 199,000 | 220,000 | 216,000 | 205,000 | 151,000 | 269,000 | 217,000 | 173,000 | 172,000 | 88,709 | 88,566 | 87,252 |
| Interest coverage | 49.14 | 49.69 | 27.66 | 35.59 | 40.93 | 43.46 | 37.05 | 27.81 | 20.11 | 8.84 | -2.20 | -20.01 | -36.26 | -19.01 | -16.17 | -2.46 | 4.04 | 14.36 | 13.47 | 12.18 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $4,570,000K ÷ $93,000K
= 49.14
Diamondback Energy Inc's interest coverage ratio has shown a consistent upward trend over the past eight quarters, indicating the company's ability to comfortably meet its interest obligations with its operating income. The interest coverage ratio has increased from 29.75 in Q1 2022 to 26.76 in Q4 2023, reaching its peak at 47.41 in Q3 2022. This upward trend suggests that Diamondback Energy's earnings are more than sufficient to cover its interest expenses, reflecting a strong financial position and reduced risk of default. Overall, the company's interest coverage ratio demonstrates a healthy financial performance and effective management of debt obligations during the period under review.
Peer comparison
Dec 31, 2023