Halliburton Company (HAL)

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	3,822,000	4,083,000	2,707,000	1,800,000	-2,436,000
Interest expense	US$ in thousands	450,000	395,000	375,000	469,000	505,000
Interest coverage		8.49	10.34	7.22	3.84	-4.82

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $3,822,000K ÷ $450,000K
= 8.49

Halliburton Company's interest coverage has shown significant positive improvement over the years, from a concerning -4.82 in December 31, 2020, to a healthier 3.84 in December 31, 2021, 7.22 in December 31, 2022, 10.34 in December 31, 2023, and slightly dipping to 8.49 in December 31, 2024. This indicates the company's ability to meet its interest obligations has strengthened, reflecting better financial health and potentially reduced financial risk. Overall, the trend suggests an improving financial position and better ability to service its debt obligations.