Liberty Oilfield Services Inc (LBRT)
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 | 389,468 | 488,298 | 586,247 | 650,892 | 760,488 | 835,198 | 812,954 | 717,080 | 495,994 | 234,095 | 11,546 | -135,062 | -176,856 | -156,588 | -157,901 | -175,375 | -131,935 | -100,835 | -41,228 | 44,962 |
| Interest expense (ttm) | US$ in thousands | 32,214 | 30,812 | 29,530 | 27,942 | 28,770 | 28,429 | 27,895 | 26,282 | 26,880 | 22,055 | 15,849 | 8,370 | 3,635 | 5,350 | 8,378 | 14,651 | 14,505 | 14,035 | 14,166 | 14,107 |
| Interest coverage | 12.09 | 15.85 | 19.85 | 23.29 | 26.43 | 29.38 | 29.14 | 27.28 | 18.45 | 10.61 | 0.73 | -16.14 | -48.65 | -29.27 | -18.85 | -11.97 | -9.10 | -7.18 | -2.91 | 3.19 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $389,468K ÷ $32,214K
= 12.09
Liberty Oilfield Services Inc's interest coverage ratio has shown significant fluctuations over the provided periods, moving from positive to negative values.
As of March 31, 2020, the interest coverage ratio was 3.19, indicating that the company had decent earnings to cover its interest expenses. However, from June 30, 2020, to September 30, 2021, the interest coverage ratio steadily declined, reaching negative values. This implies that Liberty Oilfield Services Inc's earnings were insufficient to cover its interest obligations during this period, raising concerns about its financial health and ability to meet debt obligations.
The trend started to improve from June 30, 2022, with the interest coverage ratio turning positive. The company experienced a steady increase in its interest coverage ratio from this point onwards, reaching 12.09 as of December 31, 2024. This positive trend indicates that Liberty Oilfield Services Inc's earnings have improved significantly, providing a comfortable cushion to cover its interest expenses.
Overall, the interest coverage trend for Liberty Oilfield Services Inc reflects a period of financial strain followed by a recovery phase. Investors and stakeholders should continue to monitor the interest coverage ratio to ensure the company's ability to meet its debt obligations and sustain its financial stability.
Peer comparison
Dec 31, 2024