Liberty Oilfield Services Inc (LBRT)

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	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	67,736	106,399	137,641	173,994
Interest expense (ttm)	US$ in thousands	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	14,681	14,968	14,890	14,833
Interest coverage		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	4.61	7.11	9.24	11.73

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $760,488K ÷ $28,770K
= 26.43

The interest coverage ratio of Liberty Energy Inc has shown a strong increasing trend over the past quarters, indicating the company's ability to meet its interest obligations from its operating profits. The ratio has significantly improved from negative values in Q1 and Q2 of 2022 to positive values reaching as high as 29.63 in Q3 of 2023. This indicates that the company's operating income is more than sufficient to cover its interest expenses, providing a favorable sign of financial stability and creditworthiness. Overall, the rising trend in interest coverage suggests an improvement in Liberty Energy Inc's financial health and ability to meet its debt obligations.