Helix Energy Solutions Group Inc (HLX)

Interest coverage

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	115,965	70,848	52,127	11,980	28,873	51,832	15,765	-22,735	-55,005	-91,774	-98,438	-84,915	-47,153	-11,028	40,660	62,701	30,742	33,003	33,184	43,640
Interest expense (ttm)	US$ in thousands	33,901	32,397	28,135	23,961	19,370	16,900	17,392	17,963	18,950	19,918	21,371	22,491	23,370	26,193	27,694	28,838	28,531	22,536	16,839	11,981
Interest coverage		3.42	2.19	1.85	0.50	1.49	3.07	0.91	-1.27	-2.90	-4.61	-4.61	-3.78	-2.02	-0.42	1.47	2.17	1.08	1.46	1.97	3.64

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $115,965K ÷ $33,901K
= 3.42

Helix Energy Solutions Group Inc's interest coverage ratio has exhibited significant fluctuations over the reported periods. The interest coverage ratio, which measures the company's ability to meet its interest payments on outstanding debt, indicates the number of times the company can cover its interest expenses with its earnings before interest and taxes (EBIT).

From March 31, 2020, to December 31, 2021, the interest coverage ratio declined steadily, indicating a deteriorating ability to cover interest expenses with operating income. During this period, the ratio fell from 3.64 to -2.02, reflecting a potential increased financial risk for the company.

Starting from March 31, 2022, the interest coverage ratio continued to decline, reaching its lowest point at -4.61 on June 30, 2022, and September 30, 2022, suggesting a severe strain on the company's ability to service its debt obligations.

Subsequently, there was a partial recovery in the interest coverage ratio, with values turning positive by March 31, 2023. The ratio improved steadily over the following periods, reaching a value of 3.42 by December 31, 2024, indicating a stronger ability to cover interest payments with operating income.

Overall, the fluctuations in Helix Energy Solutions Group Inc's interest coverage ratio signal periods of financial stress and recovery. Investors and stakeholders should closely monitor these ratios to assess the company's ability to meet its debt obligations and manage financial risks effectively.