Halliburton Company (HAL)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 4,083,000 | 2,707,000 | 1,800,000 | -2,436,000 | -448,000 |
| Interest expense | US$ in thousands | 395,000 | 375,000 | 469,000 | 505,000 | 569,000 |
| Interest coverage | 10.34 | 7.22 | 3.84 | -4.82 | -0.79 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $4,083,000K ÷ $395,000K
= 10.34
The interest coverage ratio of Halliburton Co. has shown an improving trend over the past five years. The ratio has increased from 3.35 in 2019 to 10.47 in 2023, indicating the company's ability to cover interest expenses with its operating profits has significantly strengthened. This upward trend suggests that Halliburton Co. has been generating sufficient operating income to comfortably meet its interest obligations, reflecting a healthier financial position. The consistent improvement in interest coverage implies enhanced financial stability and reduced risk of default on debt payments. Overall, the increasing trend in the interest coverage ratio for Halliburton Co. is a positive indicator of the company's financial health and ability to manage its debt obligations effectively.
Peer comparison
Dec 31, 2023