NOV Inc. (NOV)

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	893,000	828,000	812,000	680,000	684,000	688,000	592,000	498,000	316,000	144,000	20,000	-69,000	-153,000	-450,000	-502,000	-612,000	-2,695,000	-2,794,000	-2,865,000	-8,485,000
Interest expense (ttm)	US$ in thousands	91,000	90,000	92,000	83,000	80,000	71,000	67,000	73,000	71,000	76,000	76,000	76,000	77,000	77,000	79,000	82,000	84,000	90,000	94,000	97,000
Interest coverage		9.81	9.20	8.83	8.19	8.55	9.69	8.84	6.82	4.45	1.89	0.26	-0.91	-1.99	-5.84	-6.35	-7.46	-32.08	-31.04	-30.48	-87.47

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $893,000K ÷ $91,000K
= 9.81

NOV Inc.'s interest coverage ratio, which measures the company's ability to cover its interest payments with its operating income, has shown a significant improvement over the analysis period from March 31, 2020, to December 31, 2024.

The interest coverage ratio was negative in the initial periods, indicating that NOV Inc. was not generating enough operating income to cover its interest expenses. However, starting from June 30, 2022, the interest coverage ratio turned positive and continued to increase consistently.

The improving interest coverage ratio suggests that NOV Inc. has been able to enhance its operating performance and generate sufficient income to comfortably meet its interest obligations. This positive trend reflects a strengthening financial position and may indicate better financial health and reduced risk of default for the company.

Overall, the consistent upward trend in NOV Inc.'s interest coverage ratio indicates a positive turnaround in the company's ability to meet its interest payments from its operating income.