Helix Energy Solutions Group Inc (HLX)
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 | 28,873 | -55,005 | -47,007 | 34,011 | 96,964 |
| Interest expense | US$ in thousands | 21,359 | 20,176 | 23,489 | 30,538 | 31,186 |
| Interest coverage | 1.35 | -2.73 | -2.00 | 1.11 | 3.11 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $28,873K ÷ $21,359K
= 1.35
The interest coverage ratio for Helix Energy Solutions Group Inc has fluctuated over the past five years. In 2023, the interest coverage ratio stood at 6.24, indicating that the company generated sufficient operating income to cover its interest expenses approximately 6.24 times. This is a significant improvement compared to the 2022 and 2021 ratios of -0.75 and -1.95, respectively, where the company's operating income was not enough to cover its interest expenses. In 2020, the interest coverage ratio improved to 0.76, but it was still below 1, suggesting a relatively risky financial position regarding debt obligations. The highest interest coverage ratio of 8.73 was recorded in 2019, indicating a strong ability to cover interest payments comfortably.
Overall, while the interest coverage ratio has shown variability over the years, the latest ratio of 6.24 in 2023 indicates an improvement in the company's ability to meet its interest obligations through operating income. However, management should continue monitoring this ratio to ensure sustained profitability and financial stability.
Peer comparison
Dec 31, 2023