Hess Corporation (HES)

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	2,593,000	2,795,000	2,881,000	3,596,000	3,688,000	3,373,000	2,834,000	1,885,000	1,640,000	1,135,000	632,000	255,000	-2,636,000	-2,737,000	-2,623,000	-2,190,000	433,000	563,000	747,000	606,000
Interest expense (ttm)	US$ in thousands	478,000	486,000	494,000	493,000	493,000	490,000	490,000	487,000	481,000	478,000	471,000	472,000	468,000	445,000	417,000	395,000	380,000	384,000	393,000	394,000
Interest coverage		5.42	5.75	5.83	7.29	7.48	6.88	5.78	3.87	3.41	2.37	1.34	0.54	-5.63	-6.15	-6.29	-5.54	1.14	1.47	1.90	1.54

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,593,000K ÷ $478,000K
= 5.42

Hess Corporation's interest coverage ratio has shown a generally positive trend over the past eight quarters. The ratio has consistently been above 4, indicating that the company's earnings before interest and taxes (EBIT) are sufficient to cover its interest expenses.

In the most recent quarter, Q4 2023, the interest coverage ratio was 6.06, slightly lower than the previous quarter, Q3 2023, which stood at 6.13. Despite this slight decrease, the ratio remains healthy and indicates that the company's ability to meet its interest obligations has not been compromised.

Looking back over the past two years, Hess Corporation's interest coverage ratio has ranged between 4.63 and 7.80. The highest ratio was recorded in Q4 2022, demonstrating a peak in the company's ability to cover its interest expenses. Despite a slight fluctuation, the interest coverage ratio for the most recent quarters suggests that Hess Corporation has maintained a solid financial position and is effectively managing its debt obligations.