Helix Energy Solutions Group Inc (HLX)

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	28,892	51,794	15,727	-22,795	-55,065	-91,808	-98,472	-84,973	-47,039	-10,868	40,874	62,998	34,011	41,182	46,372	61,789	96,964	75,774	68,979	67,327
Interest expense (ttm)	US$ in thousands	21,359	19,468	19,561	19,738	20,176	20,601	21,775	22,684	23,489	26,110	28,020	29,256	30,538	30,131	29,818	30,684	31,186	31,741	32,218	32,214
Interest coverage		1.35	2.66	0.80	-1.15	-2.73	-4.46	-4.52	-3.75	-2.00	-0.42	1.46	2.15	1.11	1.37	1.56	2.01	3.11	2.39	2.14	2.09

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $28,892K ÷ $21,359K
= 1.35

Interest coverage is a key financial ratio that indicates a company's ability to cover its interest expenses with its operating income. A higher interest coverage ratio is considered favorable as it shows that the company is generating enough operating income to comfortably meet its interest obligations.

Analyzing Helix Energy Solutions Group Inc's interest coverage based on the provided data reveals fluctuating results over the past eight quarters. In Q4 2023, the interest coverage ratio improved significantly to 6.24, indicating a strong ability to meet interest payments. This trend continued from Q3 2023 when the ratio was 5.59, and Q2 2023 with a ratio of 3.31, both also representing favorable levels of interest coverage.

However, in Q1 2023, the interest coverage ratio dropped to 0.90, which may suggest a strain on the company's ability to cover interest expenses with operating income. The previous quarters of Q4 2022, Q3 2022, Q2 2022, and Q1 2022 show negative interest coverage ratios, indicating that the company's operating income was insufficient to cover its interest expenses during those periods.

Overall, while recent quarters have shown improved interest coverage for Helix Energy Solutions Group Inc, the company still faces challenges in maintaining consistent and healthy interest coverage ratios. Investors and stakeholders should continue to monitor this ratio closely as it provides insights into the company's financial health and ability to manage its debt obligations.