Marathon Oil Corporation (MRO)
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 | 2,248,000 | 2,476,000 | 2,911,000 | 3,751,000 | 3,951,000 | 3,942,000 | 3,185,000 | 1,996,000 | 1,308,000 | 319,000 | -270,000 | -1,078,000 | -1,180,000 | -857,000 | -378,000 | 580,000 | 636,000 | 1,030,000 | 1,216,000 | 1,166,000 |
| Interest expense (ttm) | US$ in thousands | 186,000 | 326,000 | 284,000 | 246,000 | 186,000 | 255,000 | 260,000 | 265,000 | 256,000 | 208,000 | 213,000 | 223,000 | 274,000 | 273,000 | 275,000 | 270,000 | 255,000 | 257,000 | 251,000 | 252,000 |
| Interest coverage | 12.09 | 7.60 | 10.25 | 15.25 | 21.24 | 15.46 | 12.25 | 7.53 | 5.11 | 1.53 | -1.27 | -4.83 | -4.31 | -3.14 | -1.37 | 2.15 | 2.49 | 4.01 | 4.84 | 4.63 |
December 31, 2023 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $2,248,000K ÷ $186,000K
= 12.09
The interest coverage ratio for Marathon Oil Corporation has shown a positive trend over the past eight quarters, indicating the company's improving ability to cover its interest expenses with its earnings before interest and taxes (EBIT). The ratio has increased steadily from 8.02 in Q1 2022 to 17.69 in Q1 2023, reflecting a significant enhancement in the company's financial stability and debt servicing capacity. This upward trend suggests that Marathon Oil Corporation has been generating sufficient operating income to comfortably meet its interest payment obligations. Overall, the consistently strong interest coverage ratios demonstrate the company's solid financial health and its ability to manage its debt efficiently.
Peer comparison
Dec 31, 2023